Mexico's headline inflation accelerates more than expected in October
TLT•Mexico's annual inflation rose to 3.75% in October from 3.45% in September, above economists' 3.65% forecast. Core inflation reached 3.8%, while the central bank cut its benchmark rate by 25 basis points to 6.25% last week.
1. Inflation speeds up
Mexico's annual inflation accelerated for a third consecutive month, reaching 3.75% in October, compared with 3.45% in September and economists' 3.65% forecast. The core index rose 3.8% annually, up from 3.70% and slightly above expectations of 3.78%.
2. Monthly price changes
Consumer prices increased 0.65% in October, above the 0.55% forecast and the prior month's 0.42% rise. Core prices rose 0.34%, compared with a 0.31% forecast.
3. Central bank decision
Mexico's central bank, known as Banxico, unexpectedly cut its benchmark interest rate by 25 basis points last week to 6.25%, calling the move a “one-time adjustment.”
