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 eased last month to the lowest level since February 2021, 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.