General inflation in Mexico slowed more than expected to reach its lowest level in four years, feeding the arguments so that the Bank of Mexico (Banxico) continues to reduce the key rate of interest.
In its third consecutive month in Declive, the National Consumer Price Index, INPC, was 3.59% at an interannual rate, a level not seen since January 2021, according to figures released on Friday by the National Statistics Institute and geography (INEGI).
Analysts projected a 3.61%rate, according to a reuters poll.
On the other hand, the underlying inflation, considered a better parameter to measure the prices trajectory because it eliminates high volatility products, progressed slightly to 3.66%, compared to 3.65% of the previous month.
The Bank of Mexico accelerated on the eve its rhythm of cuts to the key rate of interest when applying a cutting -by -point reduction, after five reductions of 25 base points last year.
In its press release, the Governing Board said that forward it could consider adjusting it again in a similar magnitude as inflation cools and after the economy contracted at the end of last year.
In January alone, prices grew 0.29% compared to the previous month, while the underlying index showed a rate of 0.41%, the INEGI said.
The items that suffered the most increases in the month were that of lonchías, fondas, tortías and taquerías; Low octane gasoline and chicken, while air transport, tomato and onion were the ones that descended the most.
With Reuters information.
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