MEXICO CITY, Nov 22 (Reuters) - Mexican inflation picked up
faster than expected in early November on a seasonal spike in
electricity costs, but tame core price pressures point to steady
interest rates well into next year.
Inflation for the 12 months though the first half of November jumped to 3.51 percent, compared with expectations for a rise of 3.31 percent in a Reuters poll and after a 3.27 percent rate in the first half of October.
Mexico's consumer prices in the 12 months to October rose 3.36 percent, marking the slowest annual inflation pace since early this year.
The central bank's limit for acceptable inflation is 4 percent. Price pressures are expected to be muted over the coming year as the economy recovers from a contraction in the second quarter and policymakers are expected to keep borrowing costs steady next year.
Consumer prices rose 0.85 percent in thmped. The rise was above e first half of November as summer electricity subsidies were phased out and tomato prices jumped. The rise was above expectations for a 0.72 percent rise and up from a 0.40 percent increase in early October.
Still, core consumer prices, which strip out some volatile food and energy prices and are what concern policymakers the most, climbed 0.11 percent compared with forecasts for a rise of 0.14 percent and down from a 0.14 percent advance in the first half of October.
Mexico's central bank cut its benchmark interest rate in September and October to an all-time low of 3.50 percent in order to counter a slump in economic growth, but policymakers said they were done lowering borrowing costs amid signs of an economic recovery.
Mexico's economy rebounded in the third quarter after a contraction in the prior quarter, data showed on Thursday. Even though the government said on Thursday that rising exports pointed to a recovery, the central bank this month said the economy will not grow at a pace that stokes higher core consumer prices over the next year.
reuters.com
Inflation for the 12 months though the first half of November jumped to 3.51 percent, compared with expectations for a rise of 3.31 percent in a Reuters poll and after a 3.27 percent rate in the first half of October.
Mexico's consumer prices in the 12 months to October rose 3.36 percent, marking the slowest annual inflation pace since early this year.
The central bank's limit for acceptable inflation is 4 percent. Price pressures are expected to be muted over the coming year as the economy recovers from a contraction in the second quarter and policymakers are expected to keep borrowing costs steady next year.
Consumer prices rose 0.85 percent in thmped. The rise was above e first half of November as summer electricity subsidies were phased out and tomato prices jumped. The rise was above expectations for a 0.72 percent rise and up from a 0.40 percent increase in early October.
Still, core consumer prices, which strip out some volatile food and energy prices and are what concern policymakers the most, climbed 0.11 percent compared with forecasts for a rise of 0.14 percent and down from a 0.14 percent advance in the first half of October.
Mexico's central bank cut its benchmark interest rate in September and October to an all-time low of 3.50 percent in order to counter a slump in economic growth, but policymakers said they were done lowering borrowing costs amid signs of an economic recovery.
Mexico's economy rebounded in the third quarter after a contraction in the prior quarter, data showed on Thursday. Even though the government said on Thursday that rising exports pointed to a recovery, the central bank this month said the economy will not grow at a pace that stokes higher core consumer prices over the next year.
reuters.com
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