Inflation in Mexico is headed for its lowest rise in two years

The smaller increases reinforce the expectations that the Bank of Mexico will maintain its reference interest rate at a maximum of 11.25%.

The median of the projections of 10 surveyed by the Reuters agency showed an annual rate of 4.77% for the National Consumer Price Index (INPC) in the first 15 days of the month, its lowest level since March 2021.

For core inflation, considered a better parameter to measure the trajectory of prices because it eliminates highly volatile products, estimates indicate that it would have fallen for the eleventh straight fortnight to 6.73%, its lowest level since March 2022.

Last month, Banxico kept the referential interest rate unchanged for the second consecutive time, and warned that it will be necessary to keep it at that level for a long time to reach convergence with the 3% inflation target.

In the first 15 days of July alone, prices would have risen 0.27% compared to the previous fortnight, while an increase of 0.22% is expected for the core index, according to the survey.

The national statistics institute, INEGI, will disclose on Monday the behavior of the consumer price index during the first half of July.

With information from Reuters