Economy

Mexican inflation likely slowed in November to lowest level since June: Reuters Poll

The median forecast of 15 analysts surveyed expected inflation to reach 3.42%, down from 4.09% in October

People are seen in the street in Mexico City, Mexico — Photo: Reuters/Carlos Jasso

08.Dec.2020 11:57 BRT

The median forecast of 15 analysts surveyed expected inflation to reach 3.42%, down from 4.09% in October;
If the forecast holds, it would mark the lowest consumer inflation rate since the indicator reached 3.33% last June;
National statistics agency INEGI will release the official November consumer inflation figures on Wednesday.

Mexican annual consumer price inflation likely dipped in November to its lowest level in five months, as downward pressure on fruit and vegetable prices and a nationwide shopping holiday boosted demand, a Reuters poll showed on Monday.

The median forecast of 15 analysts surveyed expected inflation to reach 3.42%, down from 4.09% in October.

If the forecast holds, it would mark the lowest consumer inflation rate since the indicator reached 3.33% last June.

Mexico central bank, known locally as Banxico, last month held its benchmark lending rate steady at 4.25% following a 1 1/2-year stretch of rate cuts, saying that lower borrowing costs would help pull inflation closer to its +/- 3% target.

Banxico’s next monetary policy meeting is scheduled for Dec. 17.

Analysts surveyed by the bank separately expect its main interest rate to end the year unchanged at 4.25%, which would be 25 basis points higher than the poll’s previous forecast.

In November, prices overall likely rose 0.17% while the core inflation rate, which strips out some volatile food and energy prices, fell 0.05%, the Reuters poll found. It also saw annual core inflation at 3.70%.

National statistics agency INEGI will release the official November consumer inflation figures on Wednesday.