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Economy / Mexico

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November 2010 | Data Release

Mexican consumer price inflation (CPI) headed higher in the first half of October, to 3.9% y-o-y from 3.6% the previous month, in line with our end-2010 projection of 4.50%. Nevertheless, core inflation remained well-capped over the same period, dropping slightly from 3.7% to 3.6%, and with real wage growth slowing in September, in our view a rate cut over the coming months still looks more likely than a rate hike.

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