MEXICO CITY (Reuters) -Mexico’s headline inflation slowed in the first half of July, falling back within the central bank’s target range and fueling expectations that the bank should continue to bring down interest rates in Latin America’s second-largest economy.
Consumer prices rose 3.55% in the 12 months through mid-July, data from the national statistics agency showed on Thursday, slowing down from the 4.51% reported a month earlier.
The figure also undershot the 3.64% expected by economists polled by Reuters.
The Bank of Mexico, which targets an inflation rate of 3% plus or minus one percentage point, cut its benchmark interest rate by 50 basis points in June – its third straight cut of that magnitude – bringing it to 8.5%, the lowest since August 2022.
In the first half of July alone, Mexican consumer prices rose 0.15% compared to the prior two weeks, also below expectations of a 0.27% increase.
The closely watched core price index, which strips out some volatile food and energy prices, climbed 0.15% in early July, compared with 0.22% a month earlier. The 12-month core rate came in at 4.25%.
(Reporting by Aida Pelaez-Fernandez and Ricardo Figueroa; Editing by Gabriel Araujo)
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