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Mexico Annual Inflation Slows Below 4% on Peso, Food (Update1)
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By Thomas Black

Dec. 9 (Bloomberg) -- Mexico’s annual inflation slowed to less than 4 percent in November for the first time in almost two years on a strengthening currency and lower costs for fruit and telephone calls.

Consumer prices rose 3.86 percent in November from a year earlier, the central bank said today on its Web site, down from 4.5 percent in October. Price rose 0.52 percent in November from October, the bank said. Both results were in-line with Bloomberg surveys.

Inflation has slowed as the Mexican peso strengthens against the dollar, global commodity and food prices ease and consumer demand remains weak, supporting the central bank’s decision to hold its target interest rate at 4.5 percent since July following seven consecutive reductions.

Mexico’s peso fell 0.3 percent to 12.9664 per dollar at 11:29 a.m. New York time.

To contact the reporter on this story: Thomas Black in Monterrey at [e-mail]
Last Updated: December 9, 2009 11:31 EST