For a seventh consecutive month, annual inflation in Mexico slowed, coming in at 4.64%, as the closely watched core reading returned to 2021 levels, according to new data from statistics agency INEGI, released on Thursday.

August’s annual core inflation reading, which excludes more volatile items to give a better idea of overall trends, came in at 6.08%, the lowest reading seen since December of 2021, beating the market forecasts of 6.12%.

However despite the improvement, inflation levels remain above the target rate of the Bank of Mexico of 3% plus or minus a percentage point, increasing the chances that the central bank will hold rates steady to continue to rein in inflation.

In August, consumer prices were up 0.55% from July, based on non-seasonally adjusted figures, which was higher than the expected reading of 0.52%.

The core index reading, which excludes volatile food and energy readings, was up 0.27% on the month.

Last month the Bank of Mexico elected to maintain its benchmark interest rate steady, at a record high of 11.25%. Board members indicated that it was their intent to see it remain there for an extended period, until inflation was brought down to the target range.