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Mexican inflation likely dips to 7-month low in December: Reuters poll - Metro US

Mexican inflation likely dips to 7-month low in December: Reuters poll

FILE PHOTO: General view of a market in Mexico City

MEXICO CITY (Reuters) – Mexican annual consumer price inflation likely eased in December to its lowest level in seven months, staying within the central bank’s target range, a Reuters poll showed on Tuesday.

The median forecast of nine analysts surveyed expected inflation to dip to 3.16% from 3.33% registered in November.

If the estimate is confirmed, it would be the lowest rate of inflation since May, when the consumer price index stood at 2.84%.

Mexico’s central bank last month held its benchmark interest rate unchanged at 4.25% for the second consecutive meeting and said inflation expectations for the medium and long term remain stable at levels above 3%.

The bank targets inflation of 3%, with a tolerance range of one percentage point above or below.

In December, overall prices likely rose 0.40%, while the annual core inflation rate was seen at 3.80%, according to the survey.

National statistics agency INEGI will release the official consumer inflation figures for December on Thursday.

(Reporting by Miguel Angel Gutiérrez; Writing by Drazen Jorgic; Editing by Alistair Bell)

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