Mexico Inflation Slows More Than Expected After Banxico Cut (2)

Mexican annual inflation slowed more than expected in December, supporting policymakers’ decisions to cut their benchmark interest rate at their last meeting.

Consumer prices rose 3.69% in December compared to the same month the previous year, according to the national statistics institute. The reading came in under the 3.75% median estimate of analysts surveyed by Bloomberg and down from November’s 3.80% print.

Core inflation, which excludes volatile food and fuel prices, slowed to 4.33%, compared to the 4.43% rate registered in November, and in line with the median estimate. The central bank targets inflation of 3%, plus or minus one ...