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MEXICO CITY, Nov 9 (Reuters) - Mexico’s annual inflation rate hit a fresh record low in October, rising at a slower pace than expected and pointing to little widespread pressure on consumer prices despite a sharp slump in the peso.
Inflation in the 12 months through October cooled to 2.48 percent, the national statistics agency said on Monday, below the 2.52 percent rate in September and the 2.50 percent forecast in a Reuters poll.
Mexico has been posting record lows in its annual inflation rate since May.
Tame inflation and weak growth give policymakers room to leave interest rates steady, but Mexico is still expected to hike rates when U.S. borrowing costs move higher in a bid to prevent even deeper losses in the peso.
In October, consumer prices rose 0.51 percent from September, below the poll’s expectations for an advance of 0.53 percent.
The core price index, which strips out volatile food and energy prices, rose 0.25 percent compared to forecasts for a 0.27 percent rise.
The 12-month core inflation rate rose 2.47 percent in October, just below estimates, jumping for the second month in a row in a sign of some impact on goods prices from the weak peso.
The central bank last week said that inflation would soon begin rising back toward 3 percent and above that level next year, partly due to pressure from the peso’s losses.
Reporting by Michael O'Boyle; Editing by Paul Simao