Mexico’s inflation unlikely to exceed Banxico’s target

In Mexico, due to the lower telecom, housing, and other prices, the consumer prices remained lower. This caused the inflation to fall by around 1% in early 2015.

The inflation rate of the economy fell below the Banxico's expectation of 3% for the first time in May, and following the same trend till now. At a disaggregate level, food inflation recorded its 17 months low and transport inflation slipped to half of what it was in the end of 2014.

"For October, the monthly series is expected to print at 2.47% yoy (0.50% mom) and the bi-weekly series to remain stable at 2.47% yoy. Moreover, a modestly growth is foreseen over the next 12 months", forecasts Societe Generale.