The National Consumer Price Index (INPC) advanced 7.05%, compared to 6.36% in the second half of October, the statistical institute, INEGI, reported on Wednesday. This is its highest record since April 2001.
Analysts consulted in a Reuters poll projected biweekly annual inflation to accelerate to 6.87%. Meanwhile, year-on-year core inflation grew at a rate of 5.53%, its highest level since April 2009 and higher than the 5.42% expected by the market.
“The strength of this inflation data will pressure Banxico to act more aggressively to quell inflation. But, for now, we believe that its tightening cycle will continue to be gradual.”said Nikhil Sanghani, an emerging markets economist at Capital Economics.
Banco de México (Banxico) this month raised its benchmark interest rate by 25 basis points (bp) for the fourth time in a row to 5%, and raised its expectations for inflation at the end of this year.
Banxico’s next monetary policy announcement, the last of a total of eight for the year, is scheduled for December 16. Banxico has a permanent inflation target of 3% +/- one percentage point.
Only in the first 15 days of November, consumer prices rose 0.69%, while the underlying index increased 0.15%, INEGI said.
The increase in inflation was driven by price increases for some agricultural products and electricity rates.
Source From: Ambito
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