By Zoila Palma: Mexico’s annual inflation rate accelerated in August for the first time in five months, according to official data released today, while underlying price pressures continued to ease.
Consumer prices in Latin America’s second-largest economy rose 3.26% in the year through August, up from 3.12% in July but slightly below economists’ forecast of 3.3%.
The increase comes as the Bank of Mexico maintains a cautious approach to further interest-rate cuts. Pantheon Macroeconomics chief Latin America economist Andres Abadia said persistent services inflation and the possibility of temporary shocks, including El Niño and geopolitical disruptions, give policymakers “little reason to resume easing soon.” Bank of Mexico Deputy Governor Jonathan Heath has also said the central bank should not cut rates again in the short term.
On a monthly basis, consumer prices increased 0.20% in August, compared with a 0.03% rise in July and below the 0.25% increase economists had expected.
Mexico’s government has projected that inflation will end 2026 at 3.5%, before slowing to 3.0% by the end of 2027, according to a draft budget proposal submitted to Congress.
Meanwhile, core inflation, which excludes some volatile food and energy prices, showed signs of easing.
The post International News: Mexico’s Inflation hits 3.26% in August appeared first on Belize News and Opinion on www.breakingbelizenews.com.
By Zoila Palma: Mexico’s annual inflation rate accelerated in August for the first time in five months, according to official data released today, while underlying price pressures continued to ease. Consumer prices in Latin America’s second-largest economy rose 3.26% in the year through August, up from 3.12% in July but slightly below economists’ forecast of
The post International News: Mexico’s Inflation hits 3.26% in August appeared first on Belize News and Opinion on www.breakingbelizenews.com.
