MEXICO CITY, July 23 (Reuters) – Mexico’s annual inflation rate decelerated for an eighth consecutive fortnight in early July, official data showed on Thursday, slowing more than market participants had expected while core inflation returned to the central bank’s target range.
In Latin America’s second-largest economy, 12-month inflation hit 3.10% in the period, down from 3.55% a month earlier, national statistics agency INEGI said. Economists in a Reuters poll had forecast a reading of 3.12%.
The closely watched core price index, which strips out some volatile food and energy prices, rose 3.95% in the 12 months through early July, down from 4.12% in the first half of June, in line with expectations.
Annual core inflation is now within the Bank of Mexico’s target range of 3%, plus or minus one percentage point.
(Reporting by Aida Pelaez-Fernandez and Ricardo Figueroa; Editing by Gabriel Araujo)
