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Inflation Barely Ahead of Expectations; Confirms Core CPI at Lowest Since Q2'22

MEXICO
  • Both Headline and Core CPI were only just ahead of expectations for the June reading, confirming Core CPI slowing to the lowest levels in over a year on a Y/Y basis.
  • Housing provided the firmest drag, but healthcare also slowed notably on the month. The rise in transportation costs has now slowed to 3.99% from 6.92% a year ago.
  • USMCA meetings continue after the arrival of US' Tai yesterday. Comments following the meeting late Thursday saw the US raise concerns over the use of Mexico's electronic payment methods, as well as Mexico's commitment to energy and Biotech. Meanwhile, Mexico expressed concern over the US' approach to labor mechanisms in the USMCA agreement.

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