Mexico annual inflation likely slowed to 4.03% in May
A Reuters poll of 15 analysts suggests annual headline inflation fell for a second month to 4.03% in May. Lower electricity and food costs drove the decline, though rates are expected to remain at 6.50% as inflation stays above the central bank target.
Mexico annual inflation likely slowed to 4.03% in May, down from 4.45% in April. The projected decline marks the second consecutive monthly drop for the headline figure. Persistent price pressures above the 3% target suggest the central bank will maintain high interest rates through 2027.
### Seasonal Subsidies Drive Monthly Price Drop A Reuters poll of 15 analysts indicates headline consumer prices fell 0.12% on a monthly basis. Seasonal electricity subsidies in several cities and lower costs for fruits and vegetables drove the contraction. Despite the dip, the headline rate remains above the central bank's 3% target range.
