MEXICO CITY, Aug 9 (Reuters) – Mexican annual inflation slowed to the lowest level in four months in July but still slightly overshot expectations to remain well above the central bank’s target rate, data from the national statistics agency INEGI showed on Monday, Reuters reports on website.

Consumer prices increased by 5.81% in the year through July, the lowest rate since March, the INEGI figures showed. The data compared with the consensus forecast of a Reuters poll for a reading of 5.77%. In June, inflation stood at 5.88%.

The central bank, which will hold its next monetary policy meeting on Thursday, targets an inflation rate of 3%, with a one percentage point tolerance range above and below that.

Expectations have been growing that the bank could hike its benchmark interest rate for the second meeting in a row in a bid to contain price pressures in Latin America’s no. 2 economy.

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