Mexican CPI(mom) likely to rise, but Bi-weekly numbers indicate inflation to fall further

Mexican inflation month on month basis for November is expected by the market consensus to be rising to 0.61, when compared to that of its previous month's 0.51, on yoy basis, the inflation is expected to drop to 2.27%.

The core inflation is expected to drop to 0.07 from last October's 0.25 on m/m basis, while there is a drop expected in the Bi-weekly CPI(mom) , Bi-weekly CPI(yoy) and Bi-weekly core CPI (mom) to 0.06, 2.26, 0.04 respectively by the consensus.

Consumer prices weakness is primarily because of lower energy effects, telecom and other prices in housing segment, which helped in the decline of inflation by around 1% in January from 2014 end level.

"We expect the monthly series to print at 2.33% yoy (0.65% mom) and the bi-weekly series to rise to 2.39% yoy (0.16% change from mid-November levels)", says Societe Generale in a research note.