Mexico's annual inflation rate is seen climbing in June, but policymakers expect the rise to be temporary as the pace of consumer price gains is contained by a sluggish economy.
_0">Inflation in the 12 months through June MXCPIA=ECI is likely to have come in at 3.78 percent, up from a 3.51 percent annual rate in May, according to a Reuters poll of 20 analysts.
The Mexican central bank unexpectedly slashed its main interest rate by 50 basis points in early June to a record low of 3.00 percent, saying slack in the economy gave it room to lower borrowing costs without fanning inflation.
Policymakers have said they expect temporary factors to drive the annual rate above the central bank's 4 percent limit in the second half of the year, but that the rate should fall back toward 3 percent by early next year.
The Reuters poll showed analysts expect consumer prices to have risen 0.20 percent MXINFL=ECI in June, mostly on an uptick in gasoline prices.
Core inflation, which strips out some volatile food and energy costs, was seen up 0.22 percent MXCPIX=ECI as prices for beer and restaurants rose. Analysts noted the price hikes were likely fueled by businesses raising prices around viewing events for the soccer World Cup.
The national statistics institute will release inflation data at 8 a.m. CDT (9:00 EST) on Wednesday.
(Reporting by Jean Luis Arce; Editing by Eric Walsh)