Mexico Headline Inflation Eases

Mexico’s central bank, Banxico, released its January inflation figures showing that headline inflation eased somewhat while core inflation rose significantly, driven by continuing high prices of maize and tortillas. Monthly headline inflation fell to 0.52% from 0.58% in December taking inflation for the 12 months through January down below the 4% target ceiling to 3.98%. Core inflation for the month was up from 0.43% to 0.50%, taking annual inflation up from 3.61% to 3.89%. So far, the price hikes in certain foods have not crossed over into general price rises and analysts believe that interest rates will likely remain unchanged this month.