Mexico saw its annual inflation rate slow for the sixth consecutive month in July to 4.79% as the level of inflation steadily approaches the Bank of Mexico’s (Banxico) target, according to data issued by the National Institute of Statistics and Geography (Inegi).
In July, the National Consumer Price Index (INPC) showed a monthly advance of 0.48%, with which, at an annual rate, inflation slowed to 4.79%.
Inflation has slowed for the sixth month in a row, and it is now at its lowest level since March 2021, when consumer prices rose 4.67%, according to the fresh statistics.
In this way, inflation would be close to Banxico’s target of 3% +/- 1 percentage point, after last year it reached levels not seen in two decades above 8%.
“The data begin to reflect the difficulties that will be in the coming months to achieve the marginal but necessary declines that are necessary for inflation to stabilize within Banxico’s objective,” said Marcos Daniel Arias, analyst at Monex.
“Inflation will not meet the central bank’s target until the first quarter of 2025,” Alejandro Saldaa, deputy head of economic analysis at Ve por Más (Bx +), said.
“The dilution of bottlenecks, lower prices of raw materials, the decrease in logistics costs, the appreciation of the Mexican peso, and the expectation of lower demand pressures are factors that we believe will contribute to inflation maintaining a downward trend,” added the economist of Ve por Más.
