Mexico: Inflation falls to lowest level since March in July
Consumer prices increased 0.59% in July over the previous month, after June’s 0.53% increase. July’s uptick was the sharpest increase in prices since March. The reading was driven by rising prices for food, beverages and tobacco and housing.
Inflation came in at 5.8% in July, which was down from June’s 5.9%. July’s result marked the lowest inflation rate since March, but was still well above Banxico’s 3.0% target. Meanwhile, the trend pointed up slightly, with annual average inflation coming in at 4.5% in July (June: 4.3%). Lastly, core inflation ticked up to 4.7% in July, from the previous month’s 4.6%.
Given headline inflation was above the target and core price pressures intensified, July’s figures suggest further rate hikes by the Central Bank are a distinct possibility in the near future.