Mexico's October headline CPI rose 3.75% YoY, above a survey median of 3.65% and
prior 3.45%, heightening doubts about Banxico's decision to cut rates last week.
Core CPI rose to 3.80% YoY, slightly above economists' 3.78% forecast and up
from 3.75%. Banxico's five-member policy board revised forward guidance, saying
the new rate level may be left unchanged “for an extended period”; officials
said keeping borrowing costs at current levels should help inflation converge
but flagged upside risks. Q3 GDP expanded 3.2% YoY, the fastest pace since 2023,
and recent activity strength increases uncertainty around the inflation outlook.
