Mexico: Inflation comes in at highest level since January 2001 in June
Consumer prices rose 0.84% from the previous month in June, following the 0.18% rise recorded in May. The result was driven by rising price pressures for food, beverages and tobacco, housing, transport and clothing.
Inflation came in at 8.0% in June, up from May’s 7.7% and further above the Central Bank’s 2.0%–4.0% target range. June’s figure marked the highest inflation rate since January 2001. Meanwhile, the trend pointed up slightly, with annual average inflation coming in at 7.0% in June (May: 6.8%). Lastly, core inflation ticked up to 7.5% in June, from the previous month’s 7.3%. The anti-inflation package announced by the government in early May has so far had a minimal impact on inflation, with the June inflation figures meaning that further aggressive monetary tightening is likely at Banxico’s August meeting.