Mexico's Consumer, Producer Inflation Figures Slow Down in April

(MENAFN) Mexico's national statistics agency INEGI released figures on Tuesday showing a slowdown in the country's annual consumer and producer inflation figures in April. Consumer inflation for the year came in at 6.25 percent, a decrease from the previous month's figure of 6.85 percent. The market expectation for the figure was 6.23 percent. On a monthly basis, consumer prices decreased by 0.02 percent in April, following a 0.27 percent monthly gain in March, which was below the market estimate of a 0.04 percent monthly decline.

Annual producer inflation also showed a slowdown in April, with an increase of 1.41 percent, lower than the previous month's gain of 1.8 percent. On a monthly basis, producer prices increased by 0.2 percent in April, following a 0.2 percent monthly gain in March.

The Bank of Mexico made its 15th rate increase since mid-2021 on March 30, hiking its key interest rate by 25 basis points to a record high of 11.25 percent. In the last 10 meetings, Mexico's central bank has increased the interest rate by 50 basis points six times and 75 basis points four times.

The slowdown in inflation figures is a positive sign for Mexico's economy, showing that the measures taken by the central bank are having the desired effect. The Bank of Mexico's interest rate hikes were aimed at curbing inflation, which had been fueled by rising food and energy prices, as well as the depreciation of the Mexican peso.

Despite the positive news, the country's economy still faces challenges, including the ongoing COVID-19 pandemic and uncertainty surrounding the outcome of the upcoming elections. The Bank of Mexico will continue to monitor the economic situation and make the necessary adjustments to ensure stability and growth in the future.

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