Mexico Inflation Accelerates as Banxico Reduces Easing Pace (2)

Mexico’s annual inflation accelerated slightly more than expected last month after the central bank slowed the pace of interest rate cuts.

Consumer prices rose 3.57% in August from the same month a year earlier, according to the national statistics institute, just over the 3.56% median estimate of analysts surveyed by Bloomberg and up from July’s 3.51% reading. The closely watched core reading, which excludes volatile food and fuel prices, remained unchanged at 4.23%.

Mexico’s central bank, known locally as Banxico, lowered borrowing costs by a quarter-point to 7.75% on Aug. 7 after four half-point cuts earlier in the year. ...