July 7, 2016 / 1:22 PM / 2 years ago

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
    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
    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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