Today, Latin America’s second-largest economy has seen headline inflation ease in early July, dropping within the central bank’s target range and boosting expectations that the Bank of Mexico will continue lowering interest rates.
According to data from the national statistics agency released today, Mexico’s CPI rose by 3.55% over the 12 months ending mid-July, a decrease from the 4.51% reported a month earlier.
The Bank of Mexico, which aims for a 3% inflation rate, is expected to make additional cuts, following its recent 50-basis-point reduction in June—its third consecutive cut of that amount—to bring the rate down to 8.5%, the lowest since August 2022.
According to the report, in the first half of July, Mexican consumer prices rose 0.15% compared to the previous two weeks, also below the expected 0.27% increase.
This week, Citi Group released its Expectations Survey, stating that the bank’s consensus continues to expect a 25bps rate cut at its August meeting.
By CEO NA Editorial Staff
