Mexico Annual Inflation Tops All Forecasts Before August Rate Decision

Mexico’s headline inflation accelerated much more than expected early this month, complicating investor bets that Banco de Mexico will resume interest rate cuts in August, Bloomberg News reported. Official data published Wednesday showed consumer prices rose 5.61% in the first two weeks of July from the same period a year earlier, above all forecasts in a Bloomberg survey of economists that had a 5.38% median estimate.
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Mexico’s Inflation Jumps and Clouds Banxico’s Rate Cut Path

Mexico’s inflation accelerated more than expected in June, complicating central bank’s efforts to cut interest rates that remain near an all-time high, Bloomberg News reported. Consumer prices rose 4.98% from a year earlier, above the 4.87% median estimate of analysts in a Bloomberg survey. Core inflation, a metric that strips out volatile components and that the Mexican central bank watches closely, slowed to 4.13%, slightly below the 4.14% median estimate.
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Mexico Holds Key Rate for Second Month on Inflation, Peso

Mexico kept borrowing costs unchanged near a record high Thursday, as the combination of still rising consumer prices and peso volatility sidelined the central bank for a second straight meeting, Bloomberg News reported. Banxico, as the central bank is known, held the key rate at 11% in a decision that had been forecast by 25 of 27 analysts surveyed by Bloomberg. It was a split decision, with deputy Governor Omar Mejia voting for a quarter-point cut with the other four members of the board voting in favor of the hold.
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Mexico Inflation Accelerates, Bolstering Rate Hold Bets

Mexico’s inflation accelerated more than expected in early June to move further above the central bank’s target, likely cementing a second straight pause by Banco de Mexico at its Thursday rate meeting, Bloomberg News reported. Consumer prices rose 4.78% in the first two weeks of the month from a year earlier, above the 4.73% median estimate of analysts in a Bloomberg survey and up from the 4.59% increase in the prior two-week period.
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