Mexico's core inflation to fall to lowest level since late 2021 in August

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Mexico's core inflation to fall to lowest level since late 2021 in August
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MEXICO CITY, Sept 5 - Mexican inflation likely slowed in August for the seventh straight month, with the closely watched core index expected to return to 2021 levels, a Reuters poll showed on Tuesday.

The median forecast of 10 analysts surveyed was for annual headline inflation to ease to 4.61% in August, which would be the lowest rate since February 2021. Meanwhile, annual core inflation is forecast to have slowed to 6.12%, which would mark its lowest level since December 2021. The Bank of Mexico, which has a target range for inflation of 3% plus or minus one percentage point, last month voted to keep its benchmark interest rate steady at a historic high of 11.25%, with board members suggesting it will stay at that level for an extended period of time to bring inflation to target.

In August alone, consumer prices likely rose 0.52% compared to July, while core inflation is forecast to have risen 0.30%, according to the poll. ,

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