UPDATE 1-Mexico July inflation rises in-line with forecasts

 (Recasts with details on consumer prices)
    MEXICO CITY, Aug 9 (Reuters) - Mexican inflation rose in
July to its highest level since March, ticking up for a second
month in a row, driven by volatile gasoline and tomato prices,
official data showed on Thursday.
     Mexican consumer prices rose 4.81 percent in the year
through July, the national statistics agency said, compared with
a 4.80 percent rate projected in a Reuters poll and the highest
since a 5.04 percent rate in March. 
    Earlier this year, inflation had been falling back from a
16-1/2-year high hit at the end of 2017, but the monthly rate
has ticked up for two months in a row.
    Mexico's central bank held its benchmark interest rate
steady at an over nine-year high of 7.75 percent last week.
Policymakers said gasoline prices would have a transitory impact
and that core inflation would keep falling.             
    Most economists expect the next move by the central bank
will be to cut rates, with the median of a Banamex poll this
week predicting a cut in April next year.  
     Consumer prices              rose 0.54 percent in July,
according to non-seasonally adjusted figures. Higher gasoline
prices weighed the most, followed by rising tomato prices.  
    The core index, which strips out some volatile food and
energy prices, rose 0.29 percent during the month             .

 (Reporting by Michael O'Boyle and Sharay Angulo; editing by
Jonathan Oatis)