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

• Banco de México’s decision to maintain the overnight interbank interest rate at 11.25%, as the consensus expected, reflects a strategic balance between mitigating high inflation levels and supporting ongoing economic resilience.
• The bank’s future policy decisions will be heavily influenced by the trajectory of both headline and core inflation, alongside global economic trends, domestic economic growth and labour market strength.
• The central bank’s policy outlook will consider a range of potential risks, including persistent core inflation and global economic conditions, while remaining adaptable to new economic data, with a focus on achieving its inflation target by the second quarter of 2025.

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.