Mexico Inflation Rises to 3.62 Percent in October

Mexico's annual inflation rate rose to 3.62 percent during the first half of October, up from 3.42 percent in the first half of September. Data released by the National Statistics Institute on October 22 showed the figure slightly exceeded the 3.6 percent consensus forecast.

Core inflation, which excludes volatile fuel and farm prices, reached 3.78 percent annually. This included a two-week increase of 0.25 percent that surpassed expectations. The price surge was primarily driven by an 18.5 percent jump in electricity costs following the end of summer-rate subsidies in 18 cities, alongside price increases for courgettes and green tomatoes.

While inflation rose, the National Statistics Institute reported that the unemployment rate fell to 2.8 percent in September from 3.0 percent in August. These figures suggest that underlying inflation remains sticky, which may prompt the Bank of Mexico to maintain its current interest rate of 6.50 percent during its next policy decision on November 5.