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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 CPI Inflation 4.26% y-o-y (consensus 4.28) in Oct-23

- Mexico's CPI inflation in October 2023 was 4.26% y-o-y, broadly in line with the consensus estimate, marking the lowest growth since February 2021.
- The core CPI inflation rate increased by 0.39% m-o-m in October 2023, while the overall CPI inflation rate remained stable at 0.38% m-o-m.

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.

Mexico Unemployment Rate 2.7% in Sep-23

- Mexico's unemployment rate in September 2023 decreased to 2.7%, its lowest level since June 2023.
- The current unemployment rate is 0.17 percentage points below the one-year average and 0.76 points below the long-run average, indicating a favorable labor market and potential wage growth.