Mexico Inflation Undershoots Forecasts, Putting Rate Cut in Play.

Mexico's headline inflation in March was lower than expected, increasing economists' predictions that the central bank may cut interest rates in May. Consumer prices rose by 4.42% compared to the previous year, below the estimated 4.5%. Core inflation, which excludes volatile items, also slowed to 4.55% compared to the previous year. The central bank has already reduced borrowing costs but remains cautious about the impact on consumer prices. The possibility of a rate cut in May is supported by weakening economic conditions and a strong peso. [Extracted from the article]

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