Mexican consumer prices rose slightly below estimates during the first half of October, national statistics agency INEGI said on Monday, leading annual inflation to ease from the previous month though remaining well above the central bank's target.

Consumer prices in Latin America's second-largest economy rose 0.44% in early October, official data showed, while economists polled by Reuters had expected a 0.53% increase.

On a yearly basis, Mexico's inflation hit 8.53%, down from 8.76% in the year through mid-September and also below the median forecast of 8.63% in a Reuters poll.

The Mexican central bank has been

raising interest rates

since June 2021 in a bid to tamp down inflation, which has blown past the bank's target of 3% plus or minus 1 percentage point.

The closely watched core price index, which strips out some volatile food and energy prices, climbed 0.42% in early October, slightly above market expectations of 0.35%.

Considering the core index, INEGI said, prices of goods rose 0.53% and services were up 0.30% in the period.

Within the non-core index, it added, prices of agricultural products fell 0.46% while those of energy and government-authorized tariffs rose 1.3%. (Reporting by Mexico City newsroom and Gabriel Araujo; Editing by Steven Grattan)