(Reuters) – Mexico’s headline inflation rate eased more than expected in December, fueling bets that the central bank will keep cutting its benchmark interest rate despite an uptick in the core consumer price index.
Annual headline inflation in Latin America’s second-largest economy hit 4.21% last month, INEGI data showed, below the 4.28% expected by economists in a Reuters poll and down from the November figure of 4.55%.
The closely watched core consumer price index, which excludes volatile energy and food prices, accelerated to 3.65% in the 12 months through December, up from the 3.58% in the previous month. Economists expected it to come in at 3.62%.
Last month, the Mexican central bank delivered a 25-basis-point cut to its benchmark interest rate, its fifth in 2024, bringing it down to 10.00%.
Its board noted that given progress on disinflation, larger downward adjustments could be considered in future meetings.
