Inflation

Inflation slows to 5.89% at annual rate in May

Lower electricity rates due to summer subsidies in the north of the country and a drop in domestic gas prices helped to slow down inflation in the fifth month of the year.

Inflation will give Mexicans a truce, but not the Bank of Mexico

In May, consumer prices are expected to lose strength compared to the previous month, however they will remain far from the Banco de México target of 3% +/- one percentage point.

Sharp rise in inflation in May 2021: annual variation stood at 3.3%

In the same period of 2020, inflation reached 1.5%. Since 2009 there has not been such a strong rise in food, which registered a monthly variation

Analysts consulted by Banxico see higher inflation and growth

Private analysts estimate a rebound in headline inflation of 5% and an economic recovery of 5.15% by the end of 2021.

Inflation in the United States reaches 3.6% annually in April 2021

These figures feed the fear of stronger and, especially, longer lasting inflation, which will lead the Federal Reserve to tighten its monetary policy

Inflation puts the recovery of Mexican bonds at risk

Government bonds in pesos rebounding from a sharp drop earlier this year when investors pulled out en masse. The future of the bonds depends on Banxico.

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