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Mexico CPI Inflation 4.32% y-o-y (consensus 4.4%) in Nov-23

- Mexico's year-on-year CPI inflation for November 2023 was broadly unchanged at 4.32%, slightly below market expectations.
- Core inflation in Mexico rose by 5.3% y-o-y (0.26% m-o-m) in November 2023, signalling relatively resilient underlying pressures, albeit not surprisingly so.

Mexico Unemployment Rate 2.65% (consensus 2.8%) in Oct-23

- Mexico's unemployment rate for October 2023 fell by 0.2pp to 2.65%, below the consensus estimate of 2.8%.
- The unemployment rate in Mexico is also below the one-year and long-run average, indicating a positive trend in the labour market.

Mexico Economic Activity Growth 3.3% y-o-y (consensus 3.0) in Sep-23

- Mexico's economic activity growth in September 2023 surpassed expectations with a 3.3% year-on-year increase, though it marked the lowest growth rate since April 2023.
- The month-on-month growth rate of 0.6% indicates a slowdown in the pace of economic expansion compared to the same month in the previous year.

Mexico Policy Rate 11.25% (consensus 11.25) in Nov-23

• Banco de México maintained the overnight interbank interest rate at 11.25%, in line with the economic consensus, responding to the ongoing high levels of headline and core inflation, which continue to decrease gradually.
• The decision reflects a balance between Mexico's robust economic growth and labour market strength versus global economic uncertainties, including the volatility in financial markets and sovereign interest rate movements.
• Future interest rate decisions will hinge on a range of factors, including the persistence of core inflation, foreign exchange fluctuations, global economic trends, and the effectiveness of current monetary policy in steering inflation towards the 3% target within the projected timeline.