Annual headline inflation fell to 3.94% in May, undershooting expectations and supporting Banxico’s steady rate stance.
Mexico’s annual headline inflation slowed to 3.94% in May, down from 4.45% in April and below the 4.03% consensus forecast. The monthly increase was 0.21%, while core inflation rose 0.22%, both softer than anticipated.
The data, released by the central bank, reinforced expectations that Banxico will keep its benchmark rate unchanged at 6.50% for an extended period. The bank last cut rates by 25 basis points in May, with its next policy meeting scheduled for June 25.
The Mexican Peso showed little reaction to the inflation print, as markets had already priced in a stable rate outlook. USD/MXN traded near 17.38, holding above key moving averages with modest bullish momentum.