mexico inflation

Mexico’s inflation rate cools below expectations

Mexico’s annual inflation cooled in April further below the central bank’s 3 percent target, giving policymakers room to keep interest rates on hold amid concerns about a weak currency.

Inflation in the 12 months through April cooled to 2.54 percent, the national statistics agency said on Monday. That compared with a forecast of 2.61 percent in a Reuters poll and 2.60 percent in March.

After falling to a record low in 2015, inflation in Latin America’s No. 2 economy is posting the longest period on record below the central bank’s 3 percent target.

The central bank said last week, when it held interest rates steady, that it expects inflation to creep up above 3 percent later this year but to fall back to target by the end of 2016. Mexican policymakers unexpectedly hiked interest rates in February to support the peso, which has tumbled since late 2014 to record lows amid the slump in oil prices and worries about global growth.

Last week, Mexico’s central bank suggested it could hike again if currency weakness fans inflation expectations but
policymakers said there was no sign yet of widespread price pressures from the weak peso.

While the peso recovered some ground after the February hike, the currency fell sharply last week and again on Monday.

The new data showed consumer prices fell 0.32 percent in April, a bigger drop than estimates of a 0.25 percent decrease, falling on summer electricity price subsidies and lower tomato and onion prices.

The core index, which strips out some volatile food and energy prices, rose 0.22 percent during the month,
higher than a 0.19 percent seen in the poll.

The 12-month core inflation rate rose to 2.83 percent, the highest rate since December 2014. That was above a forecast of 2.8 percent and a 2.76 percent rate in March.

(Reporting by Michael O’Boyle; Editing by Chizu Nomiyama)

Mexico's annual inflation cooled in April further below the central bank's 3 percent target, giving policymakers room to keep interest rates on hold . . .

Follow Us On Google News | Get Our Newsletter



Trending News on PVDN

  • Where do foreigners come from and where do they live in MexicoMexico City Protest on July 5 Challenges Gentrification and Airbnb’s Impact on Housing Residents of Roma and Condesa will gather at Parque México on July 5 to protest gentrification, rising rents, and Airbnb’s effect on local housing. This Saturday, July 5, Mexico City will witness its first organized citizen protest against gentrification—a peaceful but urgent gathering taking place at 3:30 p.m. at the Lindbergh Forum in Parque México,…
  • raw-sewage-playa-los-muertos-puerto-vallartaMore Raw Sewage Dumping at Playa Los Muertos Appear to Come From Local Hotel Business owners in Puerto Vallarta are demanding action after raw sewage was discovered leaking onto Playa Los Muertos, raising public health and tourism concerns. A raw sewage leak at Playa Los Muertos in Puerto Vallarta has sparked outrage among local tourist service providers and business owners, who say the contamination is driving away visitors and…
  • puerto-vallarta-rainfall-hurricane-flossie-july-2025Puerto Vallarta braces for torrential rains as Hurricane Flossie gains strength Puerto Vallarta faces a high risk of flooding as Hurricane Flossie intensifies in the Pacific. Torrential rains and overwhelmed drainage systems pose major challenges for the city. Puerto Vallarta, a city wedged between the Sierra Madre mountains and the Pacific Ocean, is no stranger to dramatic weather shifts—but this summer, the skies are testing the…
  • puerto vallarta lettersPuerto Vallarta needs a new image to create meaningful reasons for travelers to visit Business leaders at Jalisco Tourism Secretariat forums stressed the need for renewing Puerto Vallarta image and diversifying attractions to appeal to national and international markets. Local business leaders and tourism specialists agreed this week that Puerto Vallarta needs a fresh look and a broader range of attractions to compete at home and abroad. In a…
  • José Luis Velázquez RodríguezSEAPAL Official Reported Missing in Puerto Vallarta Authorities in Puerto Vallarta have launched a search for José Luis Velázquez Rodríguez, SEAPAL's head of transparency, who has been missing since June 30. Family and officials are urging the public to report any information. Local authorities and civil protection units have launched a search operation for José Luis Velázquez Rodríguez, head of the Transparency…
  • mexico city real estateGentrification in Mexico City is not the reason for the high cost of housing City housing shortage, not gentrification, drives prices skyward as planning lags behind demand and foreigner influence remains minimal. High real estate costs in Mexico City stem from a deep and persistent housing shortage—exacerbated by land constraints, tangled regulations and speculative investment—rather than by the presence of foreign residents. Despite headlines blaming “gentrification,” foreign-born residents make…
  • no-damage-jalisco-hurricane-flossieNo Damage Reported in Jalisco as Hurricane Flossie Moves Away While Mexico's Weather Service predicted heavy rains, Hurricane Flossie causes no damage along Jalisco’s coast. The Category 3 storm brings light rain and moderate waves as it moves away from the region. The coasts of Jalisco remain calm and largely unaffected following the passage of Hurricane Flossie, a powerful Category 3 storm that is now…
  • hurricane-flossie-strengthens-july-1-2025Hurricane Flossie will bring tropical storm conditions to parts of Guerrero, Michoacán, Colima, and Jalisco Hurricane Flossie intensifies off Mexico's Pacific coast with winds near 90 mph. Heavy rain, flooding, and tropical storm conditions expected in parts of Guerrero, Michoacán, Colima, and Jalisco. Hurricane Flossie continued to intensify early Tuesday morning as it moved west-northwestward off the coast of southwestern Mexico, prompting tropical storm warnings and watches across multiple states.…
  • cancun-sargassum-environmental-fund-responseWhich Quintana Roo Beaches Clean From Sargassum and Those Covered Today July 4 2025 Daily sargassum tracking for July 4, 2025: see which Quintana Roo beaches are clear of sargassum and which have landings, with ongoing cleanup efforts keeping the coast visitor-ready. Welcome to the daily sargassum tracker for the Mexican Caribbean coast. Each morning, we tally which beaches in Quintana Roo remain free of sargassum and which have…
  • tropical-wave-7-floods-bacalar-chetumal-emergency-responseTropical Wave Floods Bacalar and Chetumal as Navy and Army Activate Emergency Plans Torrential rains from Tropical Wave 7 flood Bacalar and Chetumal, prompting emergency response from the Navy and Army. Several towns remain isolated in southern Quintana Roo. Torrential rains caused by Tropical Wave Number 7 have flooded multiple communities in southern Quintana Roo, prompting a joint emergency response from Mexico’s Navy and Army. Authorities activated their…
Scroll to Top