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Mexico CPI Inflation 4.45% y-o-y in Sep-23

- Mexico's CPI inflation in September 2023 reached a year-on-year growth rate of 4.45%, the lowest since February 2021, in line with expectations.
- The figure is 2.00 percentage points below the one-year average, indicating a more subdued inflationary environment in Mexico.

Mexico PMI Manufacturing 49.8 in Sep-23

- Mexico's PMI Manufacturing contracted in September 2023, reaching its lowest level since January 2023.
- The reading of 49.8 indicates a slight decline in manufacturing activity and falls below the one-year average by 1.02 points.

Mexico unemployment rate 2.72% in Aug-23

- Mexico's unemployment rate in August 2023 decreased to 2.72%, the lowest level since June 2023.
- The current unemployment rate is below both the one-year and long-run averages, indicating sustained improvement in the job market and a positive outlook for Mexico's economy.

Banco de México: Sep-23

• The unsurprising decision to maintain the overnight interbank interest rate at 11.25% by Banco de México is aligned with the prevailing economic resilience in Mexico and persistent high levels of inflation, highlighting a balanced and watchful approach to monetary policy amid global uncertainties.
• Inflation is projected to converge more gradually to the 3% target by Q2 2025 due to enduring core inflation and potential cost-related pressures, underscoring the central bank’s commitment to monitoring and adapting monetary policy to maintain stable inflation.
• The synchronized stance of major global central banks in retaining reference rates signifies a consistent response to the ongoing economic challenges and uncertainties, emphasizing the importance of harmonized policy adjustments to manage inflationary pressures and global economic expansion prospects.