Mexico Inflation


Inflation picks up in May

In May, consumer prices dropped 0.74% over the previous month, which came in below April's virtually flat reading as well as market expectations that had prices decreasing 0.66%. The price drop mainly reflected the 18.8% month-on-month decline in electricity prices amid the summer electricity subsidy; a seasonal factor that takes place every year. Nevertheless, food prices also moderated, driving annual headline inflation down to 3.2% (April: 3.4%), broadly in line with the Central Bank's 3.0% permanent inflation target.


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