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Mexico inflation almost unchanged in June, well over cenbank target – Metro US

Mexico inflation almost unchanged in June, well over cenbank target

The spread  of the coronavirus disease (COVID-19) in Mexico
The spread of the coronavirus disease (COVID-19) in Mexico

MEXICO CITY (Reuters) – Mexican annual inflation was virtually unchanged in June, slowing slightly less than expected and remaining well above the central bank’s target rate, official data showed on Thursday.

Annual consumer price inflation in Latin America’s no. 2 economy dipped last month to 5.88% from 5.89% in May, according to figures published by national statistics agency INEGI. A rate of 5.86% had been forecast in a Reuters poll of analysts.

Compared with the previous month, prices rose in June by 0.53%, the data showed. The core price index, which strips out some volatile items, was up by 0.57% on the month.

The Mexican central bank, which targets an inflation rate of 3% with a one percentage point tolerance threshold above and below that, last month unexpectedly raised its key interest rate to 4.25% in a bid to anchor inflation expectations.

(Writing by Dave Graham; Editing by Alex Richardson)

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