By Aida Pelaez-Fernandez
MEXICO CITY, Dec 9 (Reuters) – Mexico’s annual inflation rate accelerated in November, landing slightly above market expectations, official data showed on Tuesday, and the central bank’s deputy governor flagged possible new inflation risks for the coming year.
Consumer prices rose 3.80% in the year through November, according to national statistics agency INEGI, up from 3.57% the previous month. Economists in a Reuters poll expected a 3.7% increase.
“The increase in inflation for goods resumed with greater force than expected,” economists at Banamex said in a note. They also warned of an expected inflation rebound early next year associated with possible tax increases.
The inflation rate remained within the central bank’s target range of 3% plus or minus a percentage point. In November, the bank cut borrowing costs to 7.25%, the lowest since 2022, but took a more cautious tone.
Inflation risks remain tilted to the upside, central bank deputy governor Galia Borja said in a podcast released on Tuesday.
She added that potential tax increases, tariff uncertainty and renegotiation of the U.S.-Mexico-Canada (USMCA) trade pact in the new year will call for greater caution from the monetary institution.
“Next year … will present certain additional risks,” Borja said.
Policymakers pointed to the country’s weak economy as a reason behind their latest decision, but raised concerns about sticky core inflation.
In November alone, the closely watched core index – which strips out some volatile food and energy prices – rose 0.19%, while the annual rate came in at 4.43%, both above market forecasts.
(Reporting by Aida Pelaez-Fernandez and Ricardo FigueroaEditing by Gabriel Araujo and Frances Kerry)
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