Inflation is ‘serene’ in Mexico: it drops to 5.84% in May

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General inflation gave your portfolio a new ‘breath’ in the month of May, standing at 5.84 percentaccording to data from the National Institute of Statistics and Geography (Inegi).

“In May 2023, the National consumer price index (INPC) registered a decrease of 0.22 percent compared to the previous month,” the agency reported in a statement.

The indicator for May is below the level registered in the previous month, since in April it was 6.25 percent.

“He underlying price index had an increase of 0.32 percent monthly and 7.39 percent annually. He non-core price index fell 1.88 percent at the monthly rate and increased 1.24 percent at the annual rate,” the Inegi specified in its report published this Thursday.

According to a survey carried out by Reutersprivate sector analysts slightly adjusted their estimate for local inflation for 2023 downwards to 5.02 percent from 5.05 percent previously.

Banxico vs. inflation

The governing board of the Bank of Mexico (Banxico) considers that it will be necessary keep your key rate at the current level for an extended period of time in order to achieve an orderly convergence to the inflation target, according to the minutes of its most recent meeting.

The central bank maintained its reference rate at 11.25 percent in May, putting an end to an upward cycle that had begun in June 2021. However, he has warned that the risks for inflation maintain an upward bias and in his minutes he pointed out that the majority of the members of the governing board estimated that the underlying indicator “proves to be persistent.”

“Most noted that the latest reading of annual core inflation showed a sharper reduction than in previous months, although it still remains elevated,” according to the minutes. _With information from Reuters

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Inflation is ‘serene’ in Mexico: it drops to 5.84% in May