Mexico's headline inflation saw an acceleration for a consecutive second month in December. In contrast, the core rate, which is highly regarded, continued its decreasing trajectory, according to official data released on Tuesday.
The nation's annual headline inflation reached 4.66% in December, as reported by the INEGI statistics agency. This figure exceeded the 4.55% economists had anticipated in a Reuters poll and was a rise from November's 4.32%.
Data analysis revealed that the increase in the headline rate last month was a result of robust non-core inflation, according to Jason Tuvey, an analyst at Capital Economics. Tuvey noted that this was due to a surge in agricultural prices, with inflation for fruits and vegetables reaching a two-year peak.
Meanwhile, core inflation, which excludes some fluctuating energy and food prices, recorded its 11th straight monthly decline, hitting its lowest since September 2021 at 5.09%. Core prices increased by 0.44% during the month, a rise from the previous month's 0.26% increase. The headline index also rose by 0.71%, higher than the 0.64% reported in November.
Banxico, Mexico's central bank, has maintained a "slightly hawkish" stance in its monetary policy.
Source: Reuters.com
