MEXICO CITY, Feb 24 (Reuters) – Mexico’s annual inflation rate hit 3.92% in the first half of February, official data showed on Tuesday, slightly above the 3.89% expected by economists polled by Reuters, while core inflation remained stubborn.
Consumer prices in Latin America’s second-largest economy accelerated from 3.77% in the first half of January, extending a recent upward trend.
The renewed inflationary pressures could diminish the chances of an interest rate cut by the Mexican central bank in March after policymakers unanimously decided to hold their key rate at 7% on February 5, the first pause since mid-2024.
The closely watched core price index, which strips out some volatile food and energy prices, reached 4.52% in the 12 months through early February, the national statistics agency said, up from 4.47% in early January.
It moved further above the Bank of Mexico’s 3% target, plus or minus one percentage point.
“These data provide limited – but tangible – room for Banxico to continue normalizing monetary policy in Q2,” Pantheon Macroeconomics’ chief Latin America economist, Andres Abadia, said. “For now, action next month looks constrained.”
(Reporting by Aida Pelaez-Fernandez and Ricardo Figueroa; Editing by Gabriel Araujo)
