Mexico's annual consumer, producer inflation slow in May

By Ovunc Kutlu

ISTANBUL (AA) - 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.