Mexico Inflation Slows

The rate of headline inflation in Mexico slowed last month to 3.1% from 3.2% in June, according to the central bank, Banco de México (Banxico). The CPI was up 0.28% in July compared with 0.09% in June. Core inflation, which strips out fresh food and energy, was up slightly to 3.3% in July from 3.2% in June, although month on month it fell to 0.28% from 0.33%. Inflation is being contained because healthy growth this year (around 4%) is being driven by external, not domestic demand, say economists.