Mexico annual inflation slows in May, returns to cenbank's target range

MEXICO CITY - Mexico's annual inflation rate decelerated for a second month in a row in May, official data showed on Tuesday, returning to the higher end of the central bank's target range.

Consumer prices in Latin America's second-largest economy rose 3.94% in the year through May, easing from a 4.45% increase the prior month and landing lower than economists' forecasts for a 4.2% increase in a Reuters poll.

Mexico's central bank, also known as Banxico, has an inflation target range of 3%, plus or minus a percentage point, and expects the rate to hit its aimed 3% in the second quarter of 2027.

In May alone, consumer prices registered a bigger-than-expected decline, down 0.21% from the month before, according to non-seasonally adjusted figures, compared with economists' expectations of a 0.12% decline.

The closely watched core index, which strips out some volatile food and energy prices, rose 0.22% during the month, and on annual terms it slowed to 4.19%, down from 4.26% in April.

(Reporting by Aida Pelaez-Fernandez and Carlos Serrano; Editing by Alex Richardson)

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This story was originally published June 9, 2026 at 8:47 AM.