mexico citymexican inflation slowed in the first half of october with a decline in prices of agricultural products offsetting a seasonal increase in energy costs the consumer price index rose 044 in the first two weeks of the month bringing the 12month inflation rate to 853 from 87 at the end of september the national statistics institute said monday while fresh fruit and vegetable prices fell 088 in the twoweek period energy costs rose 183 affected by a 1746 rise in electricity rates as seasonal residential subsidies ended in a number of cities core cpi which excludes energy and agricultural products but includes processed food and beverages rose 042 in the first half of october pushing the annual rate up to 839 from 828 in september with inflation running at its highest level in more than two decades the bank of mexico has raised interest rates at its previous 11 meetings and expects to lift the overnight interestrate target further this year all 31 banks polled last week by citibanamex predict the bank of mexico will raise the interestrate target from the current 925 to 10 at its nov 10 meeting in what would be a fourth consecutive threequarter point increase the central bank doesnt expect inflation to return to its 3 target until the third quarter of 2024