Mexico: 1H-August CPI – Food items keep pushing annual rates higher
Headline inflation rose 0.42% 2w/2w, surprising higher once again. Most of the increase was driven by the core (0.49%)
Hence, annual headline inflation reached 8.62% from 8.14%, with the core also higher at 7.97% from 7.75%
We reiterate our view of a 75bps hike by Banxico on September 29th, with the rate by year-end at 10.00%
Executive Director of Economic Research and Financial Markets Strategy @ Banorte
