Mexico Inflation Cools to 3.94 Percent Target Range
Mexico's annual inflation rate slowed for the second consecutive month in May, reaching 3.94% and falling within the central bank's target range. Despite the larger than expected decline, analysts expect interest rates to remain at 6.50% due to persistent concerns regarding core services prices.
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Mexico's annual inflation rate fell 0.51 percentage points to 3.94% in May, returning to the central bank's target range for the first time in two months. This reading landed below the 4.03% increase forecast by economists and followed a 4.45% rise in April. The cooling trend provides potential flexibility for policymakers, though persistent core services prices suggest interest rates may remain elevated to ensure long-term stability.
