Mexico's inflation rises to 3.75% in October, its third straight increase

Inflation in Mexico rose to 3.75% year-on-year in October, its third consecutive increase and its highest level since May, according to data published on Monday by the National Institute of Statistics and Geography (INEGI).

The National Consumer Price Index rose 0.65% on the month. Core inflation, which excludes the most volatile items and is the measure the central bank watches most closely, stood at 3.80% year-on-year, breaking an eight-month streak of declines.

The biggest monthly increases were tomatoes, up 35.58%; air transport, up 26.36%; squash, up 23.22%; and electricity, up 18.51%, driven by energy prices.

Even with the rebound, inflation remains within the Bank of Mexico's target range of 3% with a one-point margin. The central bank surprised markets last week by cutting its interest rate by 25 basis points, to 6.25%, and signaled it would hold it unchanged for an extended period.

Photo: Actuar

Source: Reuters