Economy & Business - May 2026

MEXICO | Central bank cuts interest rates as inflation slows. On 7 May Mexico’s central bank (Banxico) lowered its benchmark interest rate by 25 basis points, bringing the rate to 6.50%. Banxico’s decision came the same day as the national statistics institute (Inegi) released the consumer price index for April, showing that inflation stood at 0.20% in monthly terms and at 4.45% in annual terms. This is down from monthly inflation of 0.86% in March when annual inflation stood at 4.59%. This marks the first deceleration in annual inflation since December. Core inflation stood at 0.31% in monthly terms and 4.26% in annual terms, down from 0.38% and 4.45% respectively in March.