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Mexico Consumer Prices (Jan.)

The surge in Mexican inflation in January, to 4.7% y/y from 3.4% y/y in December, is largely the result of hikes in regulated fuel prices. Nonetheless, core inflation also continued to rise as a result of the past falls in the peso. Against this backdrop, we expect the central bank later today to hike interest rates by another 50bp, to 6.25%

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