Mexico's Inflation Reaches Lowest Level Since February 2021
Mexico City - In September, Mexico's inflation continued to ease, reaching its lowest level since February 2021.
According to the national statistics agency, the consumer price index increased by 0.44% last month, with a year-on-year increase of 4.45%. This is a decline from the 4.64% inflation rate at the end of August.
Core CPI, which excludes volatile prices of agricultural products and energy, rose by 0.36% in September, contributing to a slowdown in the annual rate to 5.76% from 6.08% in August.
While inflation has been consistently declining since February, the Bank of Mexico has stated that it is not yet prepared to cut interest rates.
The central bank has maintained its overnight interest-rate target at 11.25% for the past four policy meetings, stating that it plans to keep the rate at this level "for an extended period."
In its most recent policy statement, the bank acknowledged an improved inflation outlook but also described it as "very complicated." The Bank of Mexico has a target inflation rate of 3%.
According to a poll conducted by the Bank of Mexico among local banks and brokerages, there is a unanimous expectation that the central bank will begin lowering interest rates in the second quarter of 2024.
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