The core index, which strips out some volatile food and energy prices, rose 0.39% during the month . Annual core inflation, considered a better gauge of price trends because it excludes some highly volatile items, was 7.67%, its lowest level since July 2022 and lower than a 7.70% forecast. Banxico, as the Mexican central bank is known locally, hiked the benchmark interest rate by 25 basis points to 11.25% in late March, moderating the pace of its tightening cycle and taking a more dovish tone on the future of rate moves. Jason Tuvey, deputy chief emerging markets economist at Capital Economics, said the data will provide some comfort to officials at the central bank that price pressures are finally easing.
A poll released on Friday by bank Citibanamex showed that most of the market now expects Banxico to keep the key interest rate unchanged after 15 consecutive hikes. (Reporting by Natalia Siniawski; Editing by Steven Grattan and Emelia Sithole-Matarise)
