The Day at a Glance | August 9 2021

The Top

*Inflation in Mexico slowed down less than expected in July (5.81% vs 5.75%e.).

*The US Senate`s voting on the infrastructure package was postponed; it will now take place on Tuesday.

*Inflation in the Eurozone could accelerate more than expected: Jens Weidmann, member of the ECB and President of the Bundesbank.

*Negotiations for a new nuclear pact between Western powers and Iran stalled.

Economic environment

Inflation in Mexico slowed down less than estimated. According to figures published by the INEGI this morning, the Consumer Price Index increased 0.59% (vs 0.55%e.) during July, and general inflation set at an annual rate of 5.81% (5.75%e.). The largest contribution to growth once again came from merchandise prices as they increased 0.58% during the month (0.8% Foods, beverages and tobacco). Despite this, the increase was the smallest recorded since April; the same can be said about services (0.36%), and underlying inflation increased in line with the estimated 0.48% during the month (4.66%4.66% annual). Energy prices were the ones that increased the most in July (1.49%), while agricultural gods grew 0.74% monthly. The data confirms that inflation continues to resist decreasing and the underlying component linked 6 consecutive months of annual acceleration, which suggests that it`s highly likely that the Central Bank of Mexico will carry out a decision this week in order to reinforce its goal to stabilize prices.