Inflation & Prices

Mexico Inflation Slows as Expected, Giving Some Relief to Banxico

  • Consumer prices rose 4.67% on year, versus 4.66% estimate
  • Analysts continue to keep close eye on services sector

A customer pays for products at the Medellin market in Mexico City, Mexico.

Photographer: Susana Gonzalez/Bloomberg
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Mexico’s annual inflation eased roughly in line with expectations in early August, a positive sign for the central bank as it continues holding its interest rate at a record high to slow price growth.

Consumer prices rose 4.67% in the first half of the month compared to the same period a year earlier, down from 4.78% in late July, the national statistics institute reported Thursday. The result was roughly in line with the 4.66% median estimate of economists surveyed by Bloomberg, giving some relief to policymakers who kept borrowing costs at 11.25% in August for the third time in a row.