Mexico’s headline inflation ended 2022 slightly below analysts’ expectations, while core inflation finally appeared to have peaked, data from the national statistics agency showed on Monday.
Annual headline inflation in December reached 7.82%, up moderately from 7.80% in November, but still below the record 8.70% reached in August and September. (MXCPIA=ECI)
Meanwhile the core index, which strips out some volatile food and energy prices, hit 8.35% on an annual basis in December, dropping from November’s 8.51%, and the first slowdown since its stubborn upwards cycle began. (MXCCPI=ECI)
Economists polled by Reuters had expected annual headline inflation to come in at 7.86% and core inflation at 8.36%.
Inflation has blown past the Bank of Mexico’s target rate of 3%, plus or minus one percentage point, prompting it to increase its key lending rate by 650 basis points to 10.50% during the current hiking cycle, which began in June 2021.