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Mexico Bi-Weekly CPI (Jul.)

The small fall in Mexico’s headline inflation to 5.8% y/y in the first half of July was mainly due to fuel inflation dropping back, while the core rate remained stubbornly high at 4.6% y/y. The central bank has now shown that it will act to clamp down on above-target inflation suggesting that another 25bp rate hike, to 4.50%, is likely at its next meeting in August.

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