Mexico annual inflation eases less than forecast in July By Reuters

Mexico annual inflation eases less than forecast in July By Reuters

2/2

© Reuters. FILE PHOTO: A man is reflected on a window at a shoe shop in downtown Mexico City November 21, 2014. REUTERS/Carlos Jasso/File Photo

2/2

MEXICO CITY (Reuters) – Mexican annual inflation slowed to the lowest level in four months in July but still slightly overshot expectations to remain well above the central bank’s target rate, data from the national statistics agency INEGI showed on Monday.

Consumer prices increased by 5.81% in the year through July, the lowest rate since March, the INEGI figures showed. The data compared with the consensus forecast of a Reuters poll for a reading of 5.77%. In June, inflation stood at 5.88%.

The central bank, which will hold its next monetary policy meeting on Thursday, targets an inflation rate of 3%, with a one percentage point tolerance range above and below that.

Expectations have been growing that the bank could hike its benchmark interest rate for the second meeting in a row in a bid to contain price pressures in Latin America’s no. 2 economy.

The INEGI data showed that the index of core annual inflation, which strips out some volatile items, accelerated to 4.66%, the highest rate since the end of 2017. That figure was in line with the reading of the Reuters poll.

Compared with the previous month, headline consumer prices rose by 0.59% in July, while the core price index advanced by 0.48% from June, the data showed.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



Source link

Leave a Reply