Mexico's Inflation Rate Dropped Below 4% in May
Consumer prices fell 0.21% from April, the first monthly decline in two years, as core inflation slowed to 4.19%, INEGI said.
- Mexico's annual inflation rate fell to 3.94% in May from 4.45% in April, according to national statistics agency INEGI, marking a return to the Bank of Mexico's 2-4% target range for the first time since January.
- Banxico ended its monetary easing cycle last month, cutting the benchmark interest rate to 6.50% while officials stated it is "appropriate to maintain the reference rate at its current level" for the foreseeable future.
- Consumer prices registered their first monthly drop in two years, declining 0.21% in May. Fruit and vegetable prices surged 14.38% annually, while energy inflation reached 3.27%.
- Chief Latin America Economist Andres Abadia of Pantheon Macroeconomics said, "Inflation is moving in the right direction, but progress remains uneven." Core services inflation continues running above the 3% target.
- Services inflation accelerated for the third consecutive month to 4.57% annually, prompting Gabriela Siller to warn that "the main risk" for inflation in Mexico continues to be services, which have exceeded 4% for 54 consecutive months.
20 Articles
20 Articles
Inflation in May stood at 3.94 percent per year, a moderation compared to previous months, favored by lower prices on some fruits and vegetables, as well as by the period of summer subsidies on electricity rates, reported yesterday the National Institute of Statistics and Geography (Inegi).
Mexico annual inflation slows in May, returns to cenbank's target range
The annual general inflation in Mexico closed May 2026 at 3.94%, according to the INEGI, although the monthly variation was down (-0.21%), the increase in the price of the potato and other tubers became the main driving force behind the rise of the National Consumer Price Index (INPC).This result represents a slowdown compared to the 4.42% recorded in May 2025, since the underlying inflation, excluding volatile products, was 4.19%, while the non…
Inflation in Mexico slowed much more than expected in May and returned to the target range of the central bank, which corroborates the decision of those responsible for monetary policy to re-cut interest rates at their meeting last month. According to the National Institute of Statistics, consumer prices rose by 3.94 percent in May compared to the same month last year. This figure was below the average estimate of 4.03 percent of analysts survey…
Thanks to the actions of the Government of the Republic, inflation goes down and the confidence of investors in Mexico is maintained, reiterates President Claudia Sheinbaum. “Result of trust in Mexico. If there is no confidence in Mexico... Full note »
President Claudia Sheinbaum welcomed the reduction in the inflationary rate reported by Inegi, which was 3.94 percent as a result of the actions that have been undertaken to control the price of gasoline, the renewal of the Programme against Inflation and Charity, as well as the negotiations that have taken place with gasoline producers.
Coverage Details
Bias Distribution
- 60% of the sources lean Left
Factuality
To view factuality data please Upgrade to Premium
