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MEXICO CITY, Sept 9 (Reuters) - Mexico’s annual inflation rate cooled in August to a record low, pointing to little pressure on consumer prices from a sharp slump in the peso this year.
Inflation in the 12 months through August rose 2.59 percent in the year through August, the national statistics agency said on Wednesday, below the 2.74 percent rate seen in July and the 2.62 percent forecast in a Reuters poll.
Unlike other major economies in Latin America such as Brazil, Chile and Colombia, the pace of consumer price gains has cooled in Mexico, where weak economic growth has helped contain price pressures.
Inflation in Mexico has successively hit record lows for four months in a row and is below the central bank’s 3 percent target.
The central bank is still expected to raise interest rates when U.S. borrowing costs move higher despite tame inflation and a sluggish economy, in order to try and prevent a slump in the peso from deepening further and driving up consumer prices.
For the month of August, consumer prices rose 0.21 percent, just below expectations in the poll.
The core price index, which strips out volatile food and energy prices, rose 0.20 percent, in line with the poll.
The 12-month core inflation rate rose 2.30 percent versus 2.31 percent in July and in line with the poll, showing little pressure from a more than 20 percent drop in the peso since the middle of last year.
Reporting by Michael O'Boyle Editing by W Simon