In Latin America's largest economy, the headline annual inflation rate hit 3.59% in January, statistics agency INEGI said, down from 4.21% the previous month and just below the 3.61% expected by economists polled by Reuters.

Former St. Louis Federal President James Bullard said that inflation will slow markedly this year, allowing the central bank to continue to lower interest rates.

Mexico’s inflation slowed more than expected in January, supporting the central bank’s decision to deliver a half-point cut to its benchmark interest rate and signal additional reductions of the same magnitude.