Key facts
- Mexico's annual inflation rate slowed to 3.37% in June, down from 3.94% in May.
- The June inflation rate was lower than the 3.52% forecast by economists.
- The core inflation rate was 4.03% in June, slightly above the central bank's target range.
- Consumer prices fell 0.27% in June compared to the previous month.
- The core index rose 0.24% in June.
Mexico's annual inflation rate eased to 3.37% in June, marking the third consecutive month of deceleration and falling below economists' expectations of 3.52%. This slowdown brings inflation within the central bank's target range of 3% plus or minus one percentage point. In the same month, consumer prices decreased by 0.27% month-on-month.
However, the closely watched core inflation rate, which excludes volatile food and energy prices, stood at 4.03%, remaining slightly above the central bank's desired range. The core index saw a monthly increase of 0.24% in June.
Earlier data for the first half of June indicated an annual inflation rate of 3.55%, also below forecasts, and a monthly consumer price fall of 0.11%. The core inflation rate for the first half of June was 4.12%, with a monthly increase of 0.19%. Analysts suggest that the lower-than-expected inflation figures will reduce pressure on the Bank of Mexico to raise interest rates.