POLL-Mexico's annual inflation likely accelerated in January, according to poll

By Noe Torres

MEXICO CITY, Feb 6 (Reuters) - Mexico's inflation likely accelerated in January, a Reuters survey showed on Friday, supporting the central bank's decision a day earlier to pause its monetary easing cycle as price pressures persist.

The median forecast of 12 economists showed headline inflation rising 3.82% year-on-year, with core inflation reaching 4.49% annually.

WHY IT MATTERS
• Analysts said the acceleration was mainly due to higher food prices following tax increases on cigarettes and sugary drinks that took effect in January.

• Mexico also raised tariffs on imports from China and other mostly Asian countries with which it lacks trade agreements, as well as implemented a minimum wage increase.

• The central bank on Thursday halted a long monetary-easing cycle, citing the impact of recent fiscal changes, though it signaled possible future rate cuts.

• The bank delayed its inflation target timeline to the second quarter of 2027 from the third quarter of 2025 and raised its 2026 year-end inflation forecast to 3.5% from 3.0%.

• Mexico's national statistics institute will publish January inflation data on Monday.