MNI BRIEF: Mexico's June Inflation Down To 4.32%, Above Target

Mexico's INPC annual inflation was 4.32% in June, the Mexican National Institute of Statistics and Geography said Wednesday, announcing a figure in line with the 4.30% consensus forecast and down from 4.42% in May.

Core inflation was 4.24%, in line with the 4.21% consensus and up from 4.06%. 

Both gauges remain above the upper limit of the central bank’s 3% target range, which allows for a variation of plus or minus 1 percentage point, setting the upper limit at 4%.

Progress in bringing inflation closer to the 3% target is the main reason behind the Bank of Mexico’s decision to ease aggressively. However, the recent rebound led to a split decision last month, when the board cut by 50 basis points to 8.00%, with Deputy Governor Jonathan Heath voting to hold. (See MNI INTERVIEW: Banxico Likely To Slow Pace And Pause - Tapia)