MEXICO CITY — Mexican consumer prices rose a less-than-expected 3.33% in the year through November, dipping to its lowest level since June, according to data published by the INEGI national statistics agency on Wednesday.
The median forecast of 15 analysts surveyed by Reuters had expected inflation to reach 3.42% in November, down from 4.09% in October. The November annual inflation rate was equal to the 3.33% the indicator hit in June.
Consumer prices rose 0.08% in November, according to non-seasonally adjusted figures, the lowest monthly rise since it fell 1.01% in April.
A prolonged period of traditional pre-Christmas discount promotions helped cool price pressures in November, INEGI said.
Usually lasting just a few days, this year the so-called “Buen Fin” shopping promotions were extended by retailers for 12 days in November, from just 4 days in 2019 in order to reduce the risk of overcrowding in stores during the ongoing coronavirus pandemic.
“The discounts and sales pushed the half-month, full-month and annual price variations downward,” said INEGI.
The core index, which strips out some volatile food and energy prices, fell 0.08% during the month. Annual core consumer prices increased 3.66% in the year through November.
The central bank, known locally as Banxico, last month held its benchmark lending rate steady at 4.25% following a 1 1/2-year stretch of rate cuts, saying that lower borrowing costs would help pull inflation closer to its +/- 3% target.
Banxico’s next monetary policy meeting is scheduled for Dec. 17.
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Source: Reuters
