Sumary of UPDATE 2-Mexico inflation up more than expected, new rate hikes possible:
- National statistics agency INEGI reported annual inflation up to 5.75% during the first two weeks of this month, accelerating slightly from the previous two-week period.
- Central bank board member Jonathan Heath described the latest inflation data as “definitely bad” in a post on Twitter shortly after it was released.
- A median forecast of 19 analysts had forecast inflation ticking down to 5.65% for the first two weeks of July, compared with 5.74% in the second half of June.
- The Bank of Mexico, or Banxico, targets an inflation rate of 3% with a tolerance threshold of one percentage point above and below that level.