Inflation & Prices
Mexico’s Weak Economic Growth and Inflation Slowdown Set Up New Interest Rate Cut
- Annual inflation slowed more than forecast in early August
- Final second-quarter GDP data confirmed lackluster expansion
The Bank of Mexico in Mexico City.
Photographer: Alejandro Cegarra/BloombergThis article is for subscribers only.
Mexico’s annual inflation slowed much more than expected while economic growth remained feeble, according to separate reports published Thursday, paving the way for another interest-rate cut next month.
Official data showed consumer prices increased 5.16% in the first two weeks of August compared to the same period a year earlier, matching the lowest forecast in a Bloomberg survey of analysts. Gross domestic product rose 0.2% in the second quarter, while economic activity inched up just 0.04% on the month in June, the national statistics institute reported.