Mexico Inflation Hits Six-Year Low

Mexico’s annual inflation slowed to 3.12% in July, its lowest level since May 2020, according to INEGI data. The reading fell from 3.37% in June and matched economists’ expectations.

The data came a day after the Bank of Mexico kept its benchmark interest rate unchanged at 6.5%, extending its pause on rate cuts. The central bank expects inflation to continue easing, though at a slower pace than previously anticipated.

Core inflation edged up to 3.95%, while consumer prices increased just 0.03% month-on-month. Economists said the latest figures indicate that Mexico’s disinflation process remains on track and support the central bank’s decision to keep rates steady.

Pic Courtesy: google/ images are subject to copyright