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Mexico Inflation Reaccelerates to 3.80% in November as Electricity Costs Surge

A subsidy lapse lifted power bills, highlighting persistent services pressures that complicate Banxico’s next rate cut.

Overview

  • Consumer prices rose 0.66% from October, the largest November increase since 2021, taking annual inflation to 3.80% from 3.57% a month earlier.
  • Core inflation reached 4.43% year over year, with services up 4.49%; core rose 0.19% on the month while goods prices slipped 0.03%.
  • The non-core index climbed 2.28% monthly as electricity jumped 20.70% after the end of a summer tariff subsidy in 11 cities, adding 0.28 percentage points to November inflation.
  • Additional increases included public transport at 4.90% and tomatoes at 14.34%, while items such as avocados and potatoes declined.
  • Markets softened after the release, with the S&P/BMV IPC down about 0.30% at the open and the peso slightly weaker, even as surveys still signal expectations for a 25 bp Banxico cut at the coming meeting.