UPDATE 1-Mexico inflation cools in June further below target
(Adds historical comparisons, context) MEXICO CITY, July 7 (Reuters) - Mexico's annual inflation cooled in June further below the central bank's 3 percent target, easing concerns that a weak peso could be fanning consumer prices higher. Inflation in the 12 months through June eased to 2.54 percent, the national statistics agency said on Thursday, just below the 2.6 percent reached in May and expected in a Reuters poll. After falling to a record low in June 2015, inflation in Latin America's No. 2 economy has remained for the longest period on record below the central bank's 3 percent target. Still, Mexican policymakers raised the key interest rate more than expected last week in a bid to support the peso, which hit a fresh record low after Britain voted to leave the European Union. The new data showed consumer prices rose 0.11 percent in June, as lime and egg prices fell. That compares with expectations for a 0.16 percent rise and the 0.45 percent fall in May. The core index, which strips out some volatile food and energy prices, rose 0.25 percent during the month, just below the 0.27 percent estimate seen in the poll. The 12-month core inflation rate picked up to 2.97 percent compared to expectations for a 3.00 percent rise. (Reporting by Alexandra Alper)
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