MNI BRIEF: Mexican Inflation Up To 3.93% In April

Mexico's INPC annual inflation was 3.93% in April, the Mexican National Institute of Statistics and Geography said on Thursday, announcing a figure in line with the 3.90% consensus forecast and up from 3.80 in March.

Core inflation was also 3.93%, in line with the 3.92% consensus and up from 3.64%.

"At the monthly rate, the non-core price index fell by 0.21%. Within this category, prices of agricultural products rose by 1.60%, while energy prices and government-authorized tariffs dropped by 1.59%. This was mainly due to adjustments in electricity rates during the warm season in 18 cities across the country," INEGI said.

Recent progress in bringing inflation closer to the 3% target is the main reason behind the Bank of Mexico’s decision to accelerate its easing cycle, cutting rates by 50 basis points to 9.00% in March and signaling further reductions. (See MNI POLICY: Tariff Risks Tilt To Downside For Banxico)