Mexico's inflation eased for the ninth consecutive month in October, data from national statistics agency INEGI showed on Thursday, remaining at its lowest since early 2021 ahead of a key central bank interest rate decision.

In Latin America's second-largest economy, 12-month headline inflation hit 4.26% last month, down from 4.45% in September and the lowest since February 2021, although still above the central bank's target of 3%, plus or minus one percentage point.

That makes it unlikely for Banxico, as the Bank of Mexico is known, to deliver any interest rate cut at its meeting later in the day, as the monetary authority has been citing still complicated and uncertain inflationary outlook.

Banxico has kept its benchmark interest rate at 11.25% since March following a nearly two-year rate-hike cycle during which it added 725 basis points of hikes to combat rising consumer prices, which reached a two-decade high last year.

The annual headline inflation reading came in slightly below economist forecasts in a Reuters poll, which stood at 4.28%.

Consumer prices rose 0.38% in October, according to non-seasonally adjusted figures, while the closely monitored core index, which strips out some volatile food and energy prices, rose 0.39% during the month.

Annual core inflation, INEGI said, came in at 5.5%, in line with market expectations.

(Reporting by Gabriel Araujo in Sao Paulo; Editing by Steven Grattan)