UPDATE 1-Mexico consumer inflation hits another record low in early Oct

jueves 22 de octubre de 2015 09:28 GYT
 

(Recasts with annual rate, background)
    MEXICO CITY, Oct 22 (Reuters) - Mexico's annual inflation
cooled to a record low in early October, showing little sign of
a big impact from a sharply weaker peso that could pressure
policymakers to lift interest rates.
    Inflation in the 12 months through mid-October 
fell to 2.47 percent from 2.51 percent in the second half of
September, the national statistics institute said on Thursday.
    The rate was the lowest reading for the first half of a
month since 1989, as far back as data goes on the institute's
website. A poll of analysts by Reuters forecast a rate of 2.51
percent.
    Inflation is expected to remain below 3 percent for the rest
of the year as sluggish growth contains price pressures in Latin
America's No. 2 economy. Mexican policymakers are expected to
wait until the U.S. Federal Reserve lifts borrowing costs before
raising interest rates.
    Concerns about the impact of higher U.S. borrowing costs
have hammered the peso to successive record lows this
year and the central bank has warned it could raise interest
rates before the Fed if currency weakness drives up prices.
    But the latest data underscored the so-far limited impact of
peso weakness on goods and services.
    The data showed that consumer prices rose by 0.46 percent in
the first half of October. The analysts' poll had
forecast a 0.48 percent increase.
    The core price index, which strips out some
volatile food and energy prices, climbed 0.16 percent, in-line
with expectations and taking the 12-month core inflation rate
 up to 2.46 percent.

 (Reporting by Michael O'Boyle)