Mexico's headline inflation rate eased more than expected in December, fueling bets that the central bank will keep cutting its benchmark interest rate despite an uptick in the core consumer price index.

Mexico’s annual inflation slowed to the lowest level since early 2021 in December, keeping in play a fifth straight interest rate cut at the central bank’s next policy meeting.

The central bank cut its benchmark rate by 25 basis points to 10% in December. Minutes hint the bank will consider 50-basis-point cuts going forward.