Mexican annual inflation remained above the central bank's tolerance ceiling in early August but eased slightly versus late July, boding for steady borrowing costs ahead. Inflation for the 12 months through the first half of August cooled to 4.07 percent from 4.14 percent during the same period through the second half of July, national statistics institute data showed on Friday.
The figure was above expectations for a 4.03 percent rise and also unchanged from the 4.07 percent rate in the year through the full month of July. The spike last month brought inflation above the central bank's 4 percent ceiling but policymakers expect the pace of consumer price gains to cool by the end of the year. The rate is seen falling to near 3 percent at the start of 2015.
Mexico's central bank is expected to hold its benchmark interest rate at a record low of 3 percent on September 5 after policymakers last week trimmed their 2014 growth forecast to between 2.0 and 2.8 percent. The bank cut its benchmark rate to a record low of 3 percent in June and held steady in July, arguing that sluggish growth would contain price pressures through next year. Consumer prices rose 0.19 percent in the first half of August, compared to forecasts for a 0.14 percent rise.