SAO PAULO, Oct 9 Reuters Inflation figures released on Wednesday painted opposite scenarios for Latin America39;s two largest economies, indicating that Brazil will keep tightening its monetary policy to combat rising prices while Mexico brings its interest rate down.

The annual headline inflation figures in the two countries did not differ that much from each other, but their price trends diverged and should keep monetary policy in the emerging country peers moving in different directions.

In Brazil, annual inflation accelerated in September to 4.42, in line with market expectations but above the 4.24 reported in the previous month, closing in on the upper limit of the central bank39;s target range.

Policymakers in the country have vowed to bring inflation back to their 3 target, which has a tolerance margin of plus or minus 1.5 percentage points, meaning they will likely hike interest rates again at their next meeting in November.

The ratesetting committee, known as Copom, had already voted unanimously to embark on a tightening cycle last month, raising borrowing costs by 25 basis points to 10.75 amid inflationary pressures and strong economic activity.

September39;s inflation figures will only add to the hawkish mood at the central bank as Copom seeks to shore up its credibility amid concerns about the politicization of monetary policy, Capital Economics economist Jason Tuvey said.

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