POLL-Mexico June inflation seen steady, despite World Cup pressure
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MEXICO CITY, June 22 (Reuters) - Mexico's headline inflation is likely to have held steady in early June despite pressures from the FIFA World Cup, yet core inflation is expected to remain above the central bank's target, fueling expectations of a prolonged pause in the central bank's monetary policy
Headline inflation was seen at 3.77% year-on-year in the first half of June, unchanged from late May, according to the median forecast of a Reuters poll of 12 analysts.
Core inflation, regarded as a better measure of underlying price pressures as it strips out volatile items, is expected to have marginally eased to 4.14% from 4.15%, marking nine consecutive half-month periods of decline.
Core inflation remains above the central bank's target of 3%, plus or minus one percentage point, signaling persistent pressures.
Headline inflation is forecast to have risen 0.10% in the first half of June, while core inflation is likely to increase by 0.20%, driven by services linked to the World Cup and summer vacations.
The central bank cut its benchmark rate by 25 basis points to 6.50% in early May, signaling the end of an easing cycle that began in March 2024.
Bank of Mexico Deputy Governor Gabriel Cuadra said last week the central bank would need to keep interest rates stable amid a complex outlook.
A Citi survey showed markets expect no changes through 2027.
Official data from Mexico's national statistics agency INEGI will be released on Wednesday, ahead of the central bank's monetary policy decision on Thursday.
