Mexico’s headline inflation hits highest level in more than a year
2024.08.08 09:18
(Reuters) – Mexico’s headline inflation rate rose again in July, reaching a level not seen in over a year, while the core index showed signs of moderation, according to data released by statistics agency INEGI on Thursday.
Annual headline inflation in Latin America’s second-largest economy hit 5.57% in July, in line with expectations in a Reuters poll but surpassing June’s figure of 4.98% and reaching a level not seen since May of last year.
The inflation surge in July is expected to complicate the Mexican central bank’s potential efforts to reduce its benchmark interest rate.
At the end of June, the central bank decided to hold interest rates steady, after lowering it in March for the first time since it began its restrictive cycle in mid-2021. The bank noted that slowing inflation could pave the way for cuts.
Meanwhile, the closely-watched core index, which is considered a more reliable measure of price trends as it excludes volatile energy and food prices, continued its annual decline, hitting 4.05% in the 12 months through July.
In June, annual core inflation had reached 4.13%.
