In early August, Mexico experienced a smaller uptick in consumer prices than anticipated, while economic output showed modest expansion in the second quarter, according to official figures released on Friday. These developments bolster the likelihood of a monetary easing move by the central bank in September. n nData from the national statistics office indicated that inflation reached 3.49% in the first half of August compared to the same period last year, falling short of all projections compiled in a Bloomberg survey. The central bank’s target range for inflation is set at 3%, with a tolerance band of plus or minus one percentage point, meaning the current reading remains within acceptable bounds.
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Mexico Inflation and Economic Growth Data Help Rate Cut Case
Mexico’s prices rose much less than expected earlier this month while the economy grew modestly in the second quarter according to data published Friday, raising odds of another interest rate cut in September. n nConsumer prices gained 3.49% in the first half of August from the year prior, below all estimates in a Bloomberg survey, the national statistics agency said. Policymakers target inflation of 3%, plus or minus one percentage point.