Mexico's July Inflation Seen At Highest Level Since 2000

  • According to a Reuters poll, Mexican inflation in July will likely speed up again to a near-22-year high, fueling bets the country's central bank will continue to hike its key interest rate through the rest of the year.
  • Notably, Mexico's central bank, which targets inflation at 3% plus or minus one percentage point, has raised its benchmark interest rate by 375 basis points over its last nine monetary policy meetings, to 7.75%.
  • With annual core inflation, which strips out some volatile food and energy prices, is forecast to reach 7.60%, also the highest since late 2000, the market is expecting a further 75-basis-point hike at the bank's next rate decision scheduled for Thursday. Analysts are projecting that the total interest rate will hit 9.5% by the end of the year.

(Source: Reuters)