2023.06.0812:56:00UTC+00Mexico Inflation Eases To 21-Month Low

Mexico's consumer price inflation slowed further in May to the lowest level in almost two years amid lower energy costs, data from the National Institute of Statistics and Geography, or INEGI, showed on Thursday.

The consumer price index climbed 5.84 percent year-on-year in May, following a 6.25 percent rise in April. Economists had forecast inflation to ease to 5.90 percent.

Further, this was the slowest inflation rate since August 2021, when prices had risen 5.6 percent.

Nonetheless, the inflation rate was well above the central bank's upper target range of 4.0 percent.

Data showed that core inflation also moderated to 7.39 percent in May from 7.67 percent a month ago. The expected rate was 7.40 percent.

Energy costs fell 5.84 percent annually in May, compared with a 6.30 percent rise in the same month of 2022. This was mostly due to government intervention in the form of subsidies.

Prices for food and non-alcoholic beverages alone grew 11.44 percent from last year, and costs for services increased 5.43 percent.

On a monthly basis, consumer prices edged down by 0.22 percent in May, after a 0.02 percent nominal decrease in the prior month. Economists had forecast a 0.16 percent fall.

Core consumer prices increased 0.32 percent in May versus a 0.39 percent gain in April. Prices were expected to rise by 0.33 percent.