22 C
Thursday, April 18, 2024

Mexico’s inflation decelerates despite high rates, strong peso

Mexico’s inflation continued its gradual slowdown in early July, in line with forecasts, supported by high interest rates and the strongest peso since 2015. Consumer prices rose 4.79% in the first half of the month compared to the same period last year, down from 4.93% in late June.

Core inflation, excluding volatile items, was 6.76% on an annual basis, slightly below the previous measure. The easing of cost pressures has been aided by the strong peso, which has been rallying against the dollar for the past 12 months.

Food items like avocados and onions drove consumer prices up in early July, while airfare tickets and travel packages also impacted inflation. On the other hand, gas prices fell during the period. Despite the ongoing deceleration, inflation remains above Banxico’s target of 3%, plus or minus a percentage point.

The peso’s impressive performance has made it one of the most profitable currency trades in the last 12 months, gaining approximately 21%. Banxico left its key interest rate unchanged at 11.25% for the second consecutive month in June after a record 725-basis point hiking campaign that started in 2021.

Next Article

Related Articles

Gold and Oil Surge Expected as GCC Stocks Brace for Pressure Amid Iran-Israel Conflict, Impending Turmoil

Gold and Oil Surge, GCC Stocks Brace for Impact Amid Iran-Israel Conflict Gold prices have surged to unprecedented levels in recent weeks, reaching record highs,...

Touchstone Infotech: Pioneering Innovation in Digital Solutions for Small Businesses

Introduction:In the bustling landscape of startups and small businesses, Touchstone Infotech shines as a beacon of innovation and transformative digital solutions. Founded by Prashant...

Emirates’ Eco-Warrior Endeavor: Global Recognition for Dubai-Based Airline’s Plastic Reduction Initiative

Emirates' Eco-Champion: Global Acclaim for Dubai Airline's Plastic Reduction Initiative Emirates airline's commitment to reducing plastic waste through closed-loop recycling has garnered global recognition, positioning...

UAE Gold Prices Reach New All-Time High, Surging by Dh4.50 per Gram

UAE are advised to stay informed and exercise caution when navigating the gold market, keeping in mind the potential risks and rewards associated with...

Emirates Publishers Association Sheds Light on Emirati Children Book Publishing at 2024 Bologna Children’s Book Fair

Emirates Publishers Association (EPA) played a significant role in highlighting Emirati children's book publishing at the 2024 Bologna Children's Book Fair. Sharjah, 9 April 2024:...

Latest Articles