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