LatinNews Daily - 10 May 2024

*Mexico’s national statistics institute (Inegi) has released consumer price index figures for April, which shows inflation increased 0.20% as compared to the previous month. This brings annual inflation to 4.65%, up from annual inflation of 4.42% at the end of March and 4.40% at the end of February. The core price index, which discounts volatile items in its calculation, increased by 0.21% compared to the previous month, resulting in an annual rate of 4.37%, down from 4.55% in March. On the same day as the inflation figures were released, Mexico’s central bank (Banxico) announced it was holding interest rates at 11%, following a rate cut of 25 basis points on 21 March – the first alteration in a year. In a statement, Banxico cited the rise in annual inflation as a reason for its decision. It stated that inflation forecasts for the year-end had been adjusted upwards – from 3.6% in its previous (March) forecast to 4.0% for headline inflation and from 3.5% to 3.8% for core inflation. Banxico noted that long-term inflation forecasts remained stable.