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May CPI Inflation Expected At 1300BST

MEXICO
  • Following the spike higher in USDMXN late on Thursday, President-elect Claudia Sheinbaum said that there has to be dialogue on the constitutional reforms proposed by President Obrador. She said she will probably meet AMLO on Monday. Meanwhile, Mexico City’s Finance Chief Luz Elena Gonzalez stepped down from her role to join Sheinbaum’s transition team. The presidential transition team will officially begin working next week, Sheinbaum said.
  • On the data front, May CPI data will be released at 1300BST(0800ET), ahead of the US employment data at 1330BST. Analysts expect the headline rate of inflation to have edged up again to 4.82% y/y last month. At the same time, however, core inflation is expected to have moderated further, with the annual rate declining to 4.29% y/y. Nominal wages data for May could also be released later.
    • May CPI YoY, est. 4.82%, prior 4.65%
    • May CPI MoM, est. -0.07%, prior 0.20%
    • May CPI Core YoY, est. 4.29%, prior 4.37%
    • May CPI Core MoM, est. 0.25%, prior 0.21%

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