Mexican consumer prices rose 7.65% in the year through May, the national statistics agency said on Thursday, slightly above expectations even as the central bank drives a monetary tightening cycle to tame high inflation.

Consumer prices rose 0.18% in May, according to non-seasonally adjusted figures, while the closely watched core index, which strips out some volatile food and energy prices, rose 0.59% during the month.

Economists polled by Reuters had expected the annual rate to come in at 7.62%, while the monthly inflation figure was seen rising 0.15% and the core index hitting 0.55%.

The Bank of Mexico, which has an inflation target of 3% plus or minus one percentage point, has increased its benchmark interest rate by 300 basis points since mid-2021 to its current level 7% as it battles soaring consumer prices.

(Reporting by Anthony Esposito in Mexico City and Gabriel Araujo in Sao Paulo Editing by Gareth Jones)


Reuters