Annual headline inflation in the first half of the month came
down to 7.76% from 7.94% a month earlier, while economists
polled by Reuters had forecast 7.80%.
Meanwhile the core index, which strips out some volatile food
and energy prices, hit 8.38% on an annual basis, with a surprise
of -0.04%.
However, annual inflation still remains above the Bank of
Mexico's target rate of 3%, plus or minus one percentage point.
Consumer prices rose 0.30% during the first half of February,
the national statistics agency said on Thursday, while the
closely watched core price index climbed 0.35% in the period.
Banxico, as the Mexican central bank is known, has raised its
key interest rate by 700 basis points since its rate-hiking
cycle started in June 2021. Earlier this month it raised the
rate by a larger-than-expected 50 basis points to 11%.
Banxico deputy bank governor Jonathan Heath told Reuters last
week that the bank's monetary tightening cycle is nearing its
end and nominal interest rates could top out at between 11.25%
and 11.75%, at which point rates would be kept steady to allow
them to take effect.
(Reporting by Natalia Siniawski; Editing by Steven Grattan)
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