Particle.news

Mexico Inflation Slows to 4.45% in April

Food-price spikes keep Banxico cautious.

Overview

  • INEGI said Thursday that annual inflation eased to 4.45%, down from 4.59% in March and still above Banxico’s 3% goal.
  • Core inflation cooled to 4.26% as goods inflation slipped to 3.99% for the first time in 10 months, while services stayed firm at 4.52%.
  • Fruits and vegetables jumped 21.43% year over year, and tomato prices soared 121.06%, extending a sharp squeeze on household food budgets.
  • The non-core index fell 0.18% month over month after seasonal electricity-rate cuts in 18 cities pulled energy and regulated tariffs down 1.03%.
  • Hours before Banxico’s policy decision, Monex said markets expected a 25-basis-point cut and the peso strengthened to about 17.2 per dollar.