Mexico Inflation Accelerates, Bolstering Rate Hold Bets

Reported 8 months ago

Mexico's inflation rose more than expected in early June, surpassing analysts' estimates and moving further above the central bank's target. The acceleration of inflation is likely to result in Banco de Mexico maintaining a second consecutive pause at its rate meeting. Consumer prices increased by 4.78% from a year earlier, with core inflation rising to 4.17%, driven by factors such as drought affecting food prices and high services inflation. Analysts now predict that the central bank will delay any rate cuts until September due to rising consumer prices and inflation expectations, exacerbated by the peso's depreciation.

Source: YAHOO

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