By Natalia Siniawski
(Reuters) -Mexico’s headline inflation rate eased more than expected in December, fueling bets that the central bank will keep cutting its benchmark interest rate despite an uptick in the core consumer price index.
Annual headline inflation in Latin America’s second-largest economy hit 4.21% last month, INEGI data showed, below the 4.28% expected by economists in a Reuters poll and down from the November figure of 4.55%.
“Good news,” central bank board member Jonathan Heath wrote in a post on X, “since this is the first time (inflation) comes below the 4.26% logged in October 2023.”
Meanwhile the closely watched core consumer price index, which excludes volatile energy and food prices, accelerated to 3.65% in the 12 months through December from 3.58% the previous month. Economists expected it to come in at 3.62%.
Andres Abadia, chief Latin America economist at Pantheon Macroeconomics, said the uptick in core…
