MEXICO CITY (Reuters) – Mexico’s headline inflation likely eased in the first half of July to its lowest level in more than two years, but still remains above the central bank’s target, a Reuters poll showed on Friday, bolstering bets the bank will stick with its key rate for longer.
The median forecast of 10 analysts calls for annual inflation of 4.77% for the first 15 days of the month, its lowest level since March 2021.
Core inflation, which excludes food and volatile energy products, is expected to ease to 6.73% year-on-year, marking the eleventh consecutive fortnight of slowdown.
Both are still well above the central bank’s 3% target, plus or minus 1 percentage point.
Last month, members of the board of directors of Mexico’s central bank made the unanimous decision to keep its benchmark interest rate at 11.25% for the second time and warned that it will have to stay at that level for a prolonged period for inflation to converge to its target.
Banxico halted its rate hikes for the first time in May, after a nearly two-year hike that began in June 2021.
In the first half of July, consumer prices are likely to have risen 0.27% compared to the previous two-week period, while the core index is likely to have risen 0.22%.
Mexico’s statistics office will publish inflation data for the first half of July on Monday.
(Reporting by Noé Torres; Editing by Marguerita Choy)
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2023-07-24 07:21:46
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