Mexico inflation likely rose above 4% in August to 15-month high: Reuters poll

FILE PHOTO: A general view of a market in Mexico City, Mexico, January 11, 2017. REUTERS/Tomas Bravo/File Photo

MEXICO CITY (Reuters) - Mexican annual consumer price inflation likely accelerated above the central bank’s target range in August, pushed up by increases in the cost of goods and some agricultural produce, a Reuters poll showed on Monday.

The median forecast of 16 analysts surveyed was for inflation to reach 4.02%, up from 3.62% in July. That would take the rate to its highest level since May 2019. MXCPIA=ECI

Mexico’s central bank, which has cut its benchmark lending rate by 375 basis points since August last year to 4.5%, targets consumer price inflation of 3%, with a one percentage point tolerance band above or below that figure.

Compared with the previous month, prices were expected to have increased 0.38% in August, the poll showed. The core price index, which strips out some volatile elements, was predicted to have risen 0.27% on the month. MXINFL=ECIMXCPIX=ECI

The core annual rate of inflation was seen advancing to 3.92%. MXCCPI=ECI

Mexico’s national statistics agency is due to publish the latest inflation data on Wednesday morning.

Reporting by Noe Torres and Gabriel Burin; Editing by Leslie Adler