Mexico Inflation Slows to 4.32% as Core Gauge Pressures Banxico

Mexico’s annual consumer-price inflation eased to 4.32% in June from 4.42% in May, marginally above the 4.30% consensus, according to the national statistics agency Inegi. Prices rose 0.28% from the previous month. Core inflation—which excludes volatile food and energy costs and is closely watched by the Banco de México—accelerated for a third month to 4.24% year on year, with a 0.39% monthly gain. The reading keeps both headline and core measures outside the central bank’s 3% ±1-point target range. The data come as Banxico assesses the pace of its monetary-easing cycle. The board lowered the benchmark rate by 50 basis points to 8% in June, its fourth consecutive half-point move, but signalled that future reductions could be smaller. Economists expect the bank to trim the rate by 25 basis points at its 7 August meeting if inflation dynamics allow.