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Investing.com -- Mexico’s inflation rate has eased to a four-year low in January, according to the statistics institute Inegi. The consumer price index (CPI) increased by 0.29% last month, reducing the 12-month inflation rate to 3.59% from 4.21% in December.
This shift was primarily due to lower fresh-food prices and a seasonal decrease in some services, which counterbalanced the rises in core goods prices.
The Core CPI, which does not consider energy and agricultural prices, saw a rise of 0.41% in January. This figure represents a 3.66% increase from a year earlier, a rate almost identical to that at the end of last year.
In January, an increase in prices for items such as gasoline, diners, and cigarettes was offset by a decrease in the cost of fruits and vegetables, and services like airfares and vacation packages. The latter decrease is attributed to the conclusion of the holiday season.
In response to the lowest inflation rate since January 2021, the Bank of Mexico announced a reduction in its benchmark interest rate on Thursday. The rate was cut by half a percentage point to 9.5%, following four consecutive quarter-point reductions.
The central bank, which is also monitoring the economic growth slowdown, suggested that additional half-point cuts might be implemented in future meetings.
The Bank of Mexico anticipates a gradual easing of inflation to reach its 3% target in the third quarter of 2026.
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