inflation y/y Mexico slowed down in July for the sixth consecutive month, although it remained above the official target, supporting bets that the central bank will keep its key rate unchanged at its all-time high for longer.
The overall consumer price index stood at 4.79%, the lowest level since March 2021, after hitting a record 8.7% last year, according to data released Wednesday. National Institute of Statistics and Geography (Inegi).
On the other hand, inflation underlying, Considered the best benchmark for measuring price trajectory as it excludes high volatility products, it rose 0.39% m/m in July.
Thus, the interannual rate on this item has decreased to 6.64%, the lowest level since February 2022.
That figure also fell short of estimates that suggested the data would be posted at 6.67%, according to the survey. Reuters.
Inside, on a monthly basis, prices for goods increased by 0.31%, and services, 0.49%
Products with the highest growth: crush, with a variation of 31.01%, avocado from 28.28% and onion, from 22.86%. In contrast, those who registered the largest decline were grape, whose monthly variation decreased by 29.79%, followed by dad and others tubers, from -4.30%.
On the other hand, the price index non-underlying it rose 0.77% m/m and -0.67% y/y. At the same time, on a monthly basis, prices for agricultural products rose by 1.90%, while energy and tariffs approved by the government decreased by 0.23%.
Finally, the price index of the minimum consumer basket (IPCCM) increased by 0.24% monthly and by 4.36% annually. For the same period in 2022, the corresponding figures were 0.81% and 8.66%, in that order.
At the end of June in Bank of Mexico decided to keep the reference interest rate at a record high of 11.25% for the second time in a row, noting that it would need to be kept at this level for a long time to achieve convergence with the 3% inflation target.
The central bank ended in May a cycle of monetary tightening that began in 2021, during which it raised the funding rate by a total of 725 basis points. He will make his next monetary policy statement on Thursday.
Source: Aristegui Noticias
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