MEXICO CITY, Feb 9 – Inflation in Mexico sped up in January, data from the national statistics agency showed Monday, supporting the central bank’s decision last week to hold its interest rate as it sees inflation taking longer to reach the bank’s target.
Consumer prices rose 3.79% in the year through January, above December’s rate of 3.69% and slightly under the 3.82% forecast by analysts polled by Reuters.
The closely watched core index, which strips out highly volatile prices, rose to 4.52% up from 4.33% in December and the highest level since March 2024.
The new year brought new taxes rolled out by the government alongside a boosted minimum wage and new tariffs on China and other mainly Asian countries that Mexico does not have a free trade agreement with.
Cigarettes and bottled soft drinks, targets of new tax hikes that took effect at the year’s start, saw the largest price increases.
Last Friday, the Bank of Mexico held its benchmark interest rate at 7.0% after 12 consecutive interest rate cuts. It also forecast inflation hitting the bank’s 3% target in the second quarter of 2027, a notable extension from its previous forecast of the third quarter this year.
Members of the central bank’s governing board have said they expect the government’s new taxes and tariffs to push up prices, although likely temporarily, and that time is needed to assess their impact on inflation.
In the month of January alone, consumer prices rose 0.38%, according to non-seasonally adjusted figures, while core prices, rose 0.60% during the month.
(Reporting by Ricardo Figueroa Salas and Noe Torres; Writing by Brendan O’Boyle)
