Mexico peso firms ahead of June inflation report

MEXICO CITY, July 9 (Reuters) - Mexico's peso firmed on Wednesday ahead of a report on consumer prices in June that is widely expected to show inflation is accelerating, which would bolster expectations of higher local interest rates.

The peso <MXN=> MEX01 firmed 0.37 percent to 10.3 per dollar.

The central bank is due to report inflation data for June on Wednesday at 9 a.m. (1400 GMT).

Consumer prices in June are expected to have risen 0.42 percent, which would push the annual rate to its highest in more than three years, according to a Reuters survey of analysts on Tuesday.

"The inflation data could solidify views that there will be another rate hike," one peso trader in Mexico City said.

Last month, Mexico's central bank raised its benchmark overnight interest rate 25 basis points to 7.75 percent to tackle inflation, fueled mostly by higher global food prices.

Many economists expect the central bank will further raise interest rates at its policy meeting on July 18.

Mexican consumer prices rose 4.95 percent in the 12 months through May -- the fastest pace of inflation in more than three years. (Reporting by Michael O'Boyle, Editing by Chizu Nomiyama)