Mexico's annual inflation rate rose to 3.26% in the first half of August from 3.10% in early July, while consumer prices increased 0.10% from the first half of the previous month. Core inflation, which excludes volatile food and energy prices, remained elevated at 3.93% year-on-year and rose 0.08% month-on-month. The headline rate stayed within the Bank of Mexico's 3% target plus or minus one percentage point, leaving room for further rate cuts, but persistent underlying price pressures may constrain the pace of monetary easing. Markets will focus on the next inflation release and the central bank's upcoming policy meeting, particularly whether core inflation decelerates faster than expected.