PREVIEW-Mexico June consumer prices seen up 0.02 pct

WHAT: Mexico June inflation

WHEN: Thursday, July 8 at 9:00 a.m. (1400 GMT)

REUTERS FORECAST: Headline inflation (MXINFL=ECI: ) +0.02
percent, median forecast of 20 analysts with a range of -0.02
to +0.15 percent. Core inflation +0.13 percent (MXCPIX=ECI: ),
median forecast of 19 analysts with a range from +0.11 to

FACTORS TO WATCH: Consumer prices are expected to have
remained nearly flat in June as Mexico posts a weak recovery
from recession. Analysts following Mexico’s economy recently
cut their outlook for inflation in 2010 while slightly raising
growth forecasts. In light of those views, most analysts do not
expect the central bank to raise its benchmark lending rate
before early 2011.

MARKET IMPACT: If the price increases in June were lower
than expected, investors could bet the central bank will wait
longer to hike rates. Yields could then fall for Mexican
interest rate swaps (MXNIRS2=: ).

Central bank website for inflation data:

All Mexico economic data (ECONALLMX: )

Today’s data (ECONMX: )
(Reporting by Lizbeth Salazar; Editing by James Dalgleish)

PREVIEW-Mexico June consumer prices seen up 0.02 pct