22-04-2025
Mexico's annual inflation seen slowing in the first half of April
MEXICO CITY, April 22 (Reuters) - Mexico's annual inflation likely slowed in the first half of April, a Reuters poll on Tuesday showed, supporting chances that the central bank will again cut its key rate by half a percentage point in May.
The median estimate from 10 participants showed an annual headline inflation rate of 3.89% in the month's first half, down from 3.93% in the second half of March. (MXCPHI=ECI), opens new tab
Annual core inflation, considered a better measure of price trends because it excludes highly volatile products such as food and energy, is seen at 3.78%. (MXCPIC=ECI), opens new tab
Prices are expected to have risen 0.09% from the previous two weeks, while the core index is expected to have increased 0.21%, according to the survey. Official data will be released on Thursday. (MXCPIF=ECI), opens new tab, (MXCPIH=ECI), opens new tab
The Bank of Mexico, which has an inflation target of 3% plus or minus one percentage point, cut its benchmark interest rate by 50 basis points last month, its second consecutive reduction of that magnitude, and said it may consider similar cuts going forward if the inflation environment allows.
The bank's next rate announcement is scheduled for May 15, opens new tab, and although economic growth does not fall under its mandate, analysts believe the weak outlook stemming from global trade tensions may add to the argument for continuing the monetary easing cycle.
