Inflation in Mexico slowed down in May and reached 5.84% annualthus accumulating four consecutive months of decline thanks to the drop in the prices of some foods and electricity and gas services.
The National Consumer Price Index registered in May a decrease of 0.22%, compared to the previous month, the National Institute of Statistics and Geography (Inegi) said in a statement on Thursday. In April the annualized variation had been 6.25 percent.
The price reductions that included basic foods such as chicken, eggs, lemons, and domestic electricity and gas service rates contributed to the slowdown.according to the Inegi.
Subjacent inflation -which determines the trajectory of prices in the medium and long term- had an annualized rate of 7.39% in May, lower than that reported in the previous month.
Given the deceleration that inflation has shown in recent months, Banco de México decided in May to suspend the interest rate hike policy which it maintained since mid-2021 and left it at 11.25 percent.
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Despite the drop in prices, President Andrés Manuel López Obrador has not made changes to the anti-inflation plan that he has been applying for a year and that implied an agreement between the government and the private sector not to raise the prices of 24 basic basket products and to suspend the collection of import tariffs on a group of foods and supplies for bakery, vegetables, fruits and live animals .
The government has also maintained the fuel subsidy, a measure that according to analysts has been essential to contain inflation.
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