Mexico inflation accelerates in 1st half of October

MEXICO CITY: Mexico's inflation climbed more than expected in the first half of October, moving away from the central bank target of 3 percent annual inflation and narrowing policymakers room to cut rates.

The consumer price index rose 0.61 percent in the first half of the month, the national statistics agency INEGI said on Monday, compared with the median forecast of 0.46 percent of 10 analysts surveyed in a Reuters poll.

By contrast, in the first half of September, consumer prices rose 0.21 percent and 0.25 percent for all of September.

On an annual basis, inflation picked up its pace in the 12-month period through the first half of October to reach 3.24 percent. Analysts in the Reuters poll had expected that rate to hold at 3.14 percent after that same inflation rate was registered at the end of last month.

The central bank's annual inflation target rate is 3 percent, with a 1 percent leeway up or down.

Copyright Reuters, 2011