In October, the general inflation rate showed a slight decline, reaching 3.57% from the previous month's 3.76%, according to data from INEGI. This is mainly explained by lower agricultural prices, but with still high levels in the services sector. Within the National Consumer Price Index (INPC), it is observed that the non-underlying inflation rate stood at 1.18%, while the underlying inflation rate remains slightly above the target range at 4.28%, driven mainly by some services. This result is still a warning for the market, as it is worth remembering that this component marks the trend in the medium and long term and is the most sensitive to changes in monetary policy. In the monthly comparison, the index showed a slight acceleration compared to the previous month, standing at 0.36%, although below the historical average. "All of the above is positive, although it would be premature to assume that the inflation of goods has entered a turning point downwards, after the deceleration of its two items," said analyst Gabriela Siller. In turn, Banamex pointed out that a less favorable base for comparison and recent increases in urban transport tariffs will continue to lead to increases in non-underlying annual inflation, which would more than compensate for a slight decrease in the underlying rate, estimated by the institute. This result is mainly explained by a seasonal increase in electricity tariffs, as well as tourist service and food service prices, offset by agricultural prices. Amid the cooling of the economy, Banxico cuts the interest rate again to 7.25%. Although it remains within the range tolerated by the Bank of Mexico (Banxico), the market remains on alert due to the resistance observed in the underlying component, amidst the rate cuts it has made, placing it yesterday at 7.25%.
