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Mexico annual inflation cools in September

Published 10/08/2020, 08:45 AM
© Reuters. Outbreak of the coronavirus disease (COVID-19) in Mexico City

MEXICO CITY (Reuters) - Mexican inflation cooled to 4.01% in the year through September as consumer prices for energy dropped and food price rises were lower, data from the national statistics agency showed on Thursday.

The headline inflation number was less than forecast by analysts in a Reuters poll on Monday, however stripping out volatile energy and food prices, core inflation was in line with expectations. [L1N2GW0ZM]

The core index rose 3.99% in the year through September and 0.32% during the month .

The Bank of Mexico (Banxico), which has cut its benchmark interest rate by 400 basis points since August last year to 4.25%, targets inflation of 3%, plus or minus one percentage point.

© Reuters. Outbreak of the coronavirus disease (COVID-19) in Mexico City

The finance ministry forecasts inflation of 3.5% by the end of the year.

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