Economy

Mexico annual inflation hits lowest level in nearly four years

(Reuters) – Mexico’s annual inflation rate slowed to its lowest level in almost four years in the first half of January, official data showed on Thursday, settling under 4% and bolstering bets the central bank will continue to lower borrowing costs.

In Latin America’s second-largest economy, 12-month headline inflation came in at 3.69% in early January, statistics agency INEGI said, the lowest since February 2021 and within the central bank’s 3% target, plus or minus one percentage point.

Annual inflation was below both the previous month’s 4.44% and the 3.78% forecast by economists polled by Reuters.

In December, the Mexican central bank delivered its fifth interest-rate cut last year, taking it to 10.00% with a 25-basis-point reduction. At the time, the bank’s board noted that further and larger cuts could be considered in the future.

Mexico’s closely watched core consumer price index, considered a more reliable measure of price trends as it excludes volatile energy and food prices, rose 0.28% in the fortnight.

The annual core rate came in at 3.72%, exceeding market predictions of 3.68% and the previous month’s 3.62%.

This post appeared first on investing.com

    Sign up for our newsletter to receive the latest insights, updates, and exclusive content straight to your inbox! Whether it's industry news, expert advice, or inspiring stories, we bring you valuable information that you won't find anywhere else. Stay connected with us!

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.