Mexico City, Oct 8 (IANS): Mexican President Andres Manuel Lopez Obrador has said that inflation in Mexico has topped out and could begin to decline.

Earlier on Friday, the National Institute of Statistics and Geography (Inegi) reported that annual inflation in September held steady at 8.7 per cent, the same as in September.

Describing the report as "good news," Lopez Obrador added on Friday that "it has reached its ceiling, its maximum limit, and my forecast is that it will start to go down".

According to Inegi, in September alone the national Consumer Price Index rose 0.62 per cent over the previous month, Xinhua news agency reported.

Core inflation, which is closely monitored by Banxico, the central bank of Mexico, was 0.67 per cent in September and 8.28 per cent year- on-year.

On Monday, the Mexican government announced the extension of an agreement with the private sector that seeks to contain inflation, especially in foodstuff such as corn.

Banxico estimates inflation in Mexico could register 4 per cent at the end of 2023 and 3.1 per cent by the third quarter of 2024, in line with the official target.