Mexico's annual consumer, producer inflation slow in May

ISTANBUL

Mexico's consumer and producer inflation figures annually slowed down in May, according to figures released Thursday by national statistics agency INEGI.

Annual consumer inflation came in at 5.84% last month, slowing pace from April's level of 6.25%.

The market expectation for the figure was to come in at 5.9%.

On a monthly basis, consumer prices decreased 0.22% in May, following a 0.02% monthly decline the month before. The market estimate for the figure was to show a monthly decline of 0.16%.

While prices of agricultural products fell 0.34% on a monthly rate, energy prices decreased 3.21%, INEGI said in a statement.

Producer inflation showed an annual increase of 0.11% in May, significantly slowing its pace from the previous month's gain of 1.41%.

On a monthly basis, producer prices decreased 0.45% last month, after a 0.2% monthly gain in April, according to INEGI figures.

The Bank of Mexico last hiked its key interest rate on March 30 by 25 basis points to a record high of 11.25%, its 15th rate increase since mid-2021, but kept it unchanged at its most recent meeting on May 18.

In the last 10 meetings, Mexico's central bank made a rate hike of 50 basis points six times and 75 basis points four times.