MEXICO CITY: Mexico's annual inflation rate has likely accelerated slightly in the first half of October, thanks to higher prices for electricity, gasoline as well as fruit and vegetables, a Reuters poll showed.

Even so, the 12 experts polled by Reuters expect the inflation rate of Latin America's second-largest economy to remain within the band set by the country's central bank.

The experts forecast an annual inflation rate of 3.99% for the first two weeks of October, compared with 3.93% for the last two weeks of September.

Banxico, as the central bank is known, had cut the reference interest rate by 400 basis points in August last year to 4.25%.

Its stated objective is to keep inflation at a rate of 3% but allow for one percentage point fluctuation in either direction.

Earlier this month, the International Monetary Fund (IMF) remarked that Banxico has room for further rate cuts as the country is reeling from the impact of the coronavirus pandemic.

In the first 15 days of October, consumer prices are expected to have increased 0.45% when compared to the last two weeks of September while core inflation stood at 0.16%, the poll showed.

Their estimate for yearly core inflation was 4.00%.

Mexico's national statistics institute will publish its national consumer price index for the first 15 days of October on Thursday.