Mexican inflation seen accelerating in January: poll

MEXICO CITY (Reuters) – Mexican annual inflation likely accelerated January, driven by higher prices for food, beverages and tobacco after tax changes at start of the year, Reuters poll showed on Tuesday.

The median forecast of 15 analysts was for an inflation rate of 3.26%, up from 2.83% in December.

If confirmed, it would be the highest level of inflation recorded since the rate of 3.78% in July 2019.

Mexico’s central bank targets inflation of 3%, and inflation dipped below that level last year. In December, the bank trimmed interest rates to 7.25%, marking the fourth straight rate cut.

Compared to the previous month, consumer prices likely rose by 0.5%, according to the survey. The core price index, which strips out some volatile items, was seen rising by 0.34% on the month.

The national statistics institute will publish inflation figures for January on Friday.

(Reporting by Miguel Angel Gutierrez in Mexico City and Gabriel Burin in Buenos Aires; writing by Julia Love; Editing by David Gregorio)