Mexico Inflation Slows to Below Target, Fueling Easing Bets

• Mexico’s inflation slowed to slightly below the central bank’s target for the first time since 2016, bolstering economists’ expectations that policymakers will keep cutting interest rates this month.
• Consumer prices rose 2.97% in November from a year earlier, less than the 3% forecast by economists in a Bloomberg survey, Mexico’s statistics agency reported on Monday. Prices increased by 0.81% from a month earlier. The central bank targets inflation of 3%, plus or minus 1 percentage point.
• The central bank has said it will lower interest rates in a gradual manner despite the fact that real rates are one of the highest among emerging markets and the economy fell in technical recession at the beginning of the year.

(Source: Bloomberg)