Mexican Inflation Cools to Multi-Year Low in June

Data released by the national statistics institute Inegi show the consumer price index fell 0.27% compared to May. This performance outpaced the 0.15% drop anticipated by analysts surveyed by the Wall Street Journal. Declining prices for staples such as tomatoes and eggs served as the primary catalyst for the monthly decrease, while energy costs saw a marginal slide of 0.06%.

Core inflation, which strips out volatile food and energy items, landed at 4.03% annually—the lowest reading since April of last year. Despite this relief, service costs and nonfood core goods maintained upward pressure, rising 0.30% and 0.03% respectively from the previous month. The Bank of Mexico, currently holding its benchmark interest rate at 6.5%, remains focused on a 3% target. Following a lengthy monetary easing cycle, policymakers are widely expected to maintain current rates through the remainder of the year.