México Actividad económica May 2023

México: Inflation falls to over one-year low in May

Inflation came in at 5.8% in May, down from April’s 6.3%. May’s result marked the weakest inflation rate since August 2021. The reading was below market expectations but still above the Central Bank’s 2.0%–4.0% target range. The reading was primarily due to slower growth in prices for food, beverages and tobacco. In addition, price pressures for housing decreased at a faster rate.

The trend pointed down mildly, with annual average inflation coming in at 7.7% in May (April: 7.8%). Meanwhile, core inflation fell to 7.4% in May, from April’s 7.7%.

Lastly, consumer prices fell 0.22% in May over the previous month, a sharper drop than April’s 0.02% fall. May’s result marked the weakest reading since April 2020.