Mexico: Inflation likely continued to ease in July - BBVA

On Thursday, inflation data from Mexico is due. According to analysts at BBVA, consider the headline likely eased 0.1 pp in July with core probably inching down only 0.03pp in annual terms.

Key Quotes: 

“We expect increases of 0.42% and 0.26% MoM for headline and core inflation, translating into 3.83% and 3.82% YoY, respectively, compared to 3.95% and 3.85%, respectively in June.”

“If our forecasts prove accurate, core inflation would have remained sticky to the downside while headline inflation would have declined for the third month in a row after reaching a year-high 4.41% in April.”

“Headline inflation is likely to ease to 3.6% next month and to stay on average on that level during Aug-Nov before falling down to 3.4% in December. Core inflation is likely to ease slightly to 3.7% by the end of 3Q before easing significantly in 4Q19. We continue to expect 3.3% by year-end.”