Mexico Inflation and Growth Data Pave the Way for New Interest Rate Cut

Mexico’s annual inflation accelerated more than expected early this month in a report that likely won’t deter central bankers from cutting the interest rate again in June given the economy also posted weak growth.

Annual inflation quickened to 4.22% in early May, above the 4.02% median estimate of analysts surveyed by Bloomberg, the country’s national statistics institute reported Thursday. Core inflation, which excludes volatile items such as food and fuel, inched up to 3.97% from 3.96% in the prior two-week period.