MNI BRIEF: July Mexico's Inflation 3.51%, Back To Target Range

Mexico's INPC annual inflation was 3.51% in July, the Mexican National Institute of Statistics and Geography said Thursday, announcing a figure in line with the 3.53% consensus forecast and down from 4.32% in June.

Core inflation was 4.23%, in line with the consensus and stable from 4.24% a month earlier. Headline inflation is now back 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 rose by 0.13%. Within this component, the prices of agricultural products as well as energy and government-authorized tariffs increased by 0.13%," INEGI said.

Recent progress in bringing inflation closer to the 3% target is the main reason behind the Central Bank of Mexico’s decision to cut rates aggressively in the first half of the year. The board is expected to cut by 25 basis points today, to 7.75%. (See MNI WATCH: Banxico To Decelerate Rate Cuts Pace To 25BP)