MNI BRIEF: Mexico Inflation Down To 3.59% In January
MNI (BRASILIA) - Mexico's INPC annual inflation was 3.59% in January, the Mexican National Institute of Statistics and Geography (INEGI) said on Friday, announcing a figure below with the 3.63% consensus forecast and down from 4.21% in December.
Core inflation was 3.66%, also below the 3.69% consensus and up from 3.65% in December.
The recent inflation improvement toward the 3% target is the main reason behind the Central Bank of Mexico's decision to accelerate the pace of its easing cycle, cutting by 50 basis points to 9.50% Thursday and indicating more reductions in upcoming meetings.
"At a monthly rate, the non-core price index decreased by 0.14%. Within this, agricultural product prices fell by 1.49%, while energy prices and government-authorized tariffs rose by 0.93%," INEGI said. (See MNI WATCH: Banxico Signals More 50BP Cuts At Coming Meetings)