MNI BRIEF: August Mexico's Inflation Up To 3.57%, Core 4.23%

Mexico's INPC annual inflation was 3.57% in August, the Mexican National Institute of Statistics and Geography said Tuesday, announcing a figure in line with the consensus forecast and up from 3.51% in July.

Core inflation was 4.23%, stable from a month earlier. Headline inflation remains within the 3% target range, which allows for a 1 percentage point variation in each direction.

"At a monthly rate, the non-core price index decreased by 0.47%. Within this category, agricultural product prices fell by 1.07%, while energy prices and government-authorized tariffs rose by 0.02%," INEGI said.

Recent progress in bringing inflation closer to the 3% target was the main reason behind the Central Bank of Mexico’s decision to cut rates aggressively in the first half of the year. (See MNI INTERVIEW: Banxico To Cut Once More And Hold - Covarrubias)