MNI BRIEF: Non-Core Inflation Low, Core Stable-Banxico Minutes

Most Central Bank of Mexico board members highlighted that non-core inflation has remained at low levels and core is stable, minutes of the latest meeting released Thursday showed.

"Most members attributed the favorable evolution of headline inflation compared to the levels observed in the second quarter mainly to the decline in non-core inflation. However, one member noted a slight increase in headline inflation since last July, when it registered 3.51%," the document said.

The 3% goal allows a range of 1 percentage point in each direction.

Banxico cut rates by 25 basis points to 7.50% last month, with Deputy Governor Jonathan Heath dissenting for a third time, voting to hold at 7.75%. The board said it will continue evaluating “further adjustments” at upcoming meetings.

"Along with the persistence of the non-core component, the balance of risks for inflation faces an additional challenge," Heath argued in the minutes. (See MNI INTERVIEW: Banxico To Keep To 25BP, Caution Needed -Guzman)