Mexico: Eggs cause a rise in inflation in November
Nuts & Seeds
Market & Price Trends
Published Dec 8, 2023
Mexico's headline inflation in November accelerated less than expected, indicating the central bank may cut the key interest rate next year. The general consumer price index advanced 4.32%, below analysts' expectations of 4.40%, while core inflation fell for the tenth consecutive month to 5.30%. The Bank of Mexico is considering a rate cut in 2024, as prices increased by 0.64% in November, with electricity, eggs, and green tomatoes experiencing the most significant increases.
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The general consumer price index advanced 4.32%, above the 4.26% of the previous month, when it reached its lowest level since February 2021, according to figures released on Thursday by Inegi. However, analysts anticipated a rate of 4.40% for November, according to a Reuters poll. On the other hand, core inflation, considered a better parameter to measure the trajectory of prices because it eliminates highly volatile products, fell for the tenth consecutive month to 5.30%, its lowest level since October 2021. Last month, Bank of Mexico (Banxico) kept the reference interest rate at a historical record of 11.25% where it has been since March, but changed the tone of its monetary policy message, opening the door to an upcoming cut. Since then, several members of the bank's Board of Governors have echoed the new language. Last week, Deputy Governor Jonathan Heath mentioned in an interview that the rate could drop "once or twice" in 2024. In November ...