Mexico’s annual inflation slowed more than expected in early July, supporting the central bank’s decision to leave the door open to further easing after last month’s interest rate cut.

Mexico's headline inflation slowed in the first half of July, falling back within the central bank's target range and fueling expectations that the bank will continue to cut interest rates in Latin America's second-largest economy.

The Bureau of Labor Statistics reported that the consumer price index (CPI), a popular inflation gauge, increased in June to 2.7% on an annual basis as prices rose for consumers.

The latest higher-than-expected inflation reading delivered a "blow" to plans for a rate cut in June, he told ABC News in a statement. "There's growing uncertainty about when the first cut of 2024 ...

The pace of central bank rate cuts is slowing as early movers near the end of their easing cycles while sticky inflation keeps others cautious.

The inflation rate only increased by 0.2% in June to 3%, but while this is low enough to support a repo rate cut when the Monetary Policy Committee of the Reserve Bank sits next week, economists think the repo rate will only be cut in September.

Inflation Rates for 10 Years This stagnation in inflation rates has sparked a flurry of speculation and betting in the market, particularly concerning interest rate cuts. View this post on Instagram

The case for a U.S. interest rate cut remains unresolved as Federal Reserve officials head into their policy meeting later this month, with data showing fresh signs of higher inflation and President Donald Trump intensifying his demands for lower borrowing costs.

For more than two years, we've heard a steady drumbeat of news highlighting inflation and its impact on interest rates. The correlation seems clear, but the issue is actually more complex.

The Reserve Bank of Australia’s monetary policy board kept interest rates on hold earlier this month, deciding that a more gradual pace of cuts was needed.