(Recasts with annual rate)
MEXICO CITY, Nov 24 (Reuters) - Mexico’s annual inflation cooled more than expected in early November, falling to a record low and showing little impact from a sharply weaker peso currency.
Inflation in the 12 months through mid-November slowed to to 2.27 percent from 2.49 percent in the year-long period through the second half of October, the national statistics institute said on Tuesday.
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 2.48 percent.
Inflation is expected to climb back to above the central bank’s 3 percent target next year, but sluggish growth is containing price pressures in Latin America’s No. 2 economy.
Mexican policymakers are expected to lift borrowing costs when the U.S. Federal Reserve raises interest rates, perhaps next month.
Concerns about the impact of higher U.S. borrowing costs have hammered the peso to successive record lows this year.
But the latest data underscored the so-far limited impact of peso weakness. While the depreciation of the currency has made imported goods more expensive, it has been offset by price drops, such as a big decrease in telecommunications costs.
The data showed that consumer prices rose by 0.52 percent in the first half of November. The analysts’ poll had forecast a 0.73 percent increase.
The core price index, which strips out some volatile food and energy prices, was unchanged, well below expectations for 0.16 increase and taking the 12-month core inflation rate down to 2.35 percent. (Reporting by Michael O‘Boyle Editing by W Simon)