MNI BRIEF: Mexico October Inflation 3.57%, Within Target Range

Mexico's INPC annual inflation was 3.57% in October, the Mexican National Institute of Statistics and Geography said Friday, versus the 3.56% consensus forecast and down from 3.76% in September.

Core inflation was 4.28%, stable compared to the previous month. Headline inflation remains within the central bank's 3% target range, which allows for a 1-percentage-point variation in each direction.

"At a monthly rate, the non-core price index rose 0.63%. Within this category, prices of agricultural products fell 0.90%, while prices of energy and government-authorized tariffs increased 1.89%. This was mainly due to the end of the summer electricity rate subsidy program in 18 cities across the country covered by the INPC," INEGI said.

Recent progress in bringing inflation closer to the 3% target was the main reason behind the Central Bank of Mexico’s decision to cut rates aggressively this year. (See MNI BANXICO WATCH: One More Cut Signaled, Pause Could Be Near)