* Mexican inflation slows for seventh consecutive month in Aug * Peru president reshuffles cabinet for second time in six months * POLL-Argentina peso at risk of another devaluation post election * Colombia Aug inflation awaited By Ankika Biswas Sept 7 (Reuters) – Latin American currencies were mixed against a firmer dollar on Thursday, with the Mexican peso bouncing back after recent losses, while traders awaited Colombia’s monthly inflation print later in the day. Mexico’s peso gained 0.5% following a five-day losing streak, during which it shed nearly 5%. Data, meanwhile, showed Mexico’s annual inflation experienced a slowdown in August for the seventh consecutive month to 4.64%, with the core index returning to 2021 levels. This comes in the backdrop of the central bank keeping its interest rate steady last month, while suggesting higher-for-longer rates to bring inflation to target. “Disinflation remains broad-based, which will allow Banxico to cut rates in Q4, in both November and December… policymakers’ still-hawkish tone, though, has increased the likelihood of the easing cycle starting in December or early 2024,” said Andres Abadia, chief Latam economist at Pantheon Macroeconomics. Colombia’s peso gained 0.5% ahead of the release of August inflation data. On the flip side, top copper producers Chile’s peso and Peru’s sol lost 0.5% and 0.1%, respectively, as prices of the red metal fell to an over two-week low. Central bank data, however, showed Chile saw copper exports reach $3.71 billion in August, up 8.3% year-on-year, while posting a trade surplus of $586 million. On the political front, Peru’s President Dina Boluarte reshuffled six posts in her cabinet on Wednesday, the second partial reshuffle in her eight-month-old administration, while retaining ministers overseeing key economy and energy and mining portfolios. Brazilian President Luiz Inacio Lula da Silva announced a ministry cabinet reshuffle on Wednesday to shore up support for his political agenda from a powerful bloc of lawmakers. The Brazilian equity market was closed on Thursday for Independence day. The MSCI Latam currencies index was flat after a near 1.5% drop seen over the past two days. EM currencies are seen struggling to reclaim the ground lost this year, as high U.S. Treasury yields and safe-haven demand keeps the dollar ascendant, a Reuters poll showed. Additional polls revealed Mexico’s peso and Brazilian real are expected to weaken 2.3% to 17.84-per-dollar and 1.2% to 5.03-per-dollar, respectively, in 12 months. Another Reuters poll showed Argentina’s troubled peso is at risk of another devaluation after October’s presidential election or a potential second round in November. After the Peronist government depreciated the official exchange rate by nearly 18% and pegged it at 350-per-dollar in August, economists now expect a devaluation of 16.6% to 419.8-per-dollar in 3 months. Key Latin American stock indexes and currencies at 1438 GMT: Stock indexes Latest Daily % change MSCI Emerging Markets 973.74 -0.78 MSCI LatAm 2320.12 -0.01 Brazil Bovespa 115985.34 -1.15 Mexico IPC 0.00 0 Chile IPSA 5886.97 -0.32 Argentina MerVal 0.00 0 Colombia COLCAP 1056.38 0.92 Currencies Latest Daily % change Brazil real 4.9779 0.15 Mexico peso 17.4670 0.49 Chile peso 875.3 -0.50 Colombia peso 4055.2 0.48 Peru sol 3.6953 -0.12 Argentina peso (interbank) 349.9500 0.01 Argentina peso (parallel) 715 1.40 (Reporting by Ankika Biswas and Johann M Cherian in Bengaluru; Editing by Alexandra Hudson)