MEXICO CITY (Reuters) – Mexico’s headline inflation is forecast to have rebounded in the first half of December after six fortnights of slowing, backing bets the Bank of Mexico will continue to hike interest rates, a Reuters poll showed on Tuesday.
The median forecast of 17 participants sees annual headline inflation picking up to 7.80% from 7.46% in the second half of November, while annual core inflation is seen dipping slightly to 8.34% from 8.37% in the previous two-week period..
The core index, considered a better measurement to track prices as it strips out volatile food and energy products, is forecast to have climbed 0.56% in the first 15 days of the month compared to the previous half-month period.
Meanwhile, monthly headline inflation is expected to have risen 0.40% in the period.
The forecasts keep annual inflation far above the Bank of Mexico’s target of 3%, plus or minus one percentage point. Last week, the central bank raised its key rate for the 13th consecutive time in the current cycle to 10.50%, underscoring that at least one more increase would be necessary.
Banxico, as the central bank is also known, is set to announce its next monetary policy decision in February.
Ad: Save every day with Amazon Deals: Check out today's daily deals on Amazon.
Mexico’s statistics institute will release inflation data for the first half of December on Thursday.
(Reporting by Noe Torres; Additional reporting by Indradip Ghosh in Bengaluru; Writing by Kylie Madry; editing by Grant McCool)