Inflation slows to 3.57% in October

The National Consumer Price Index (INPC) decelerated to 3.57% at an annual rateafter two months on the rise, according to figures released on Friday by Inegi.

Analysts anticipated a rate of 3.56%, according to a Reuters poll.

For its part, core inflation, considered a better parameter to measure the price trajectory because it eliminates highly volatile products, stood at 4.28%, unchanged compared to September.

The products that put the most pressure on inflation were electricity rates, housing and air transport.

Beef, onions and transportation also saw increases that impacted inflation.

Downwards, the products that dropped the most in price were foods such as eggs, potatoes, chicken, green tomato, tomato, avocado, serrano chili and lemon.

Banxico, which has a permanent inflation objective of 3% +/- one percentage point, lowered the reference rate by 25 basis points (bp) the day before. at 7.25% as the market expected, in its twelfth decrease in the cost of credit since a cycle of cuts began last year.

In its statement of the decision, the Governing Board said that in the future it will consider reducing it again, although it modified its prospective guidance, adopting a more cautious tone regarding greater flexibility.

Banco de México has reduced rates by a total of 400 bp from their historical maximum of 11.25% at the beginning of 2024.

With information from Reuters