Overview

• In the first half of August, the INPC stood at 140.800, down 0.02% from the prior quincena, according to INEGI.
• Core inflation ran at 4.21% year over year, with a 0.09% quincenal increase driven by merchandise prices up 0.09% and services up 0.10%.
• The non-core index fell 0.41% in the quincena, as fruits and vegetables declined 1.19% while energy and regulated tariffs edged up 0.04%.
• Headline inflation was slightly above the previous 3.48% reading yet came in below a Reuters survey forecast of 3.66%.
• Analysts point to room for additional Banxico cuts this year, though a non-unanimous July vote and still-elevated core keep the outlook cautious ahead of next week’s policy meeting.