Overview

• INEGI reported headline inflation at 3.49% year over year in the first half of August, edging down from 3.51% in July and marking a third straight quincena under 4%.
• The core index rose 0.09% in the half-month and 4.21% annually, while the non-core index fell 0.41% quincenal and stood at 1.10% year over year.
• Declines in jitomate, chicken, eggs, bananas and chayote, along with lower airfares and cinema tickets, helped pull the overall index down.
• Banxico’s policy rate is 7.75% after an early-August cut, and analysts at Banamex and Monex say the new print could allow a 25 basis point reduction in September.
• In Argentina, private surveys from EcoGo and LCG show August food inflation accelerating after a late-July devaluation, with EcoGo’s data pointing near 3% for the month.