Mexico's annual inflation rate decreased unexpectedly in September, providing a favorable environment for potential interest rate cuts by the central bank in its upcoming meeting. According to the national statistics institute, consumer prices rose by 4.58% year-on-year, slightly below the 4.61% median estimate from analysts surveyed by Bloomberg.
This marks the second consecutive month of slower-than-anticipated inflation, although the rate remains above the central bank's target range of 3% plus or minus 1 percentage point. Month-on-month, prices saw a minimal increase of 0.05%.
The reduction in inflation could influence the central bank's monetary policy, potentially leading to a third consecutive interest rate cut, a move that could have significant implications for economic growth and investment in Mexico.
Source: Bloomberg, October 9, 2024