Mexico October Consumer Prices Rise at Fastest Pace in 9 Months Brendan Case and Eric Martin - Bloomberg News
go to original November 8, 2014

Mexican consumer prices rose in October at the fastest pace in nine months, as the central bank keeps interest rates at a record low to revive growth.

Prices increased 0.55 percent from a month earlier, the national statistics institute said on its website today. The gain was in line with the median forecast of 22 economists surveyed by Bloomberg. The annual inflation rate climbed to 4.3 percent, exceeding the 2 percent to 4 percent target range for a fourth straight month.

The central bank, led by Governor Agustin Carstens, left borrowing costs unchanged at a record-low 3 percent last month, saying the economy showed signs of a “moderate recovery.” The central bank unexpectedly cut its benchmark rate half a point in June to bolster growth that has missed economists’ forecasts in seven of the past nine quarters.

The central bank said in a statement accompanying last month’s rate decision that inflation will probably end the year around 4 percent and near the 3 percent midpoint of its target by mid-2015. Mexico will benefit next year from a slowdown in gasoline price increases and price cuts in telecommunications service, according to the statement.

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