It thus continues outside the target range of the Bank of Mexico (Banxico) of 3% +/- 1 percentage point.

Inflation in Mexico accelerated again in the first half of May, according to data released by the National Institute of Statistics and Geography (Inegi).

In the first half of the month, the National Consumer Price Index (INPC) decreased 0.21% compared to the previous fortnight.

In its annual comparison, consumer prices increased 4.78%, which represents a new acceleration from the figure of 4.67% in the last fortnight of April.

Inflation continues outside the Bank of Mexico (Banxico) target range of 3% +/- 1 percentage point.

Given the recent accelerations, the central bank voted unanimously to keep the interest rate at 11%.

"Going forward (the Governing Board) will assess the inflationary outlook to discuss adjustments in the reference rate. It will consider the impact of the restrictive monetary stance that has been maintained and that which continues to prevail on the evolution of inflation over the horizon in which monetary policy operates,” Banxico reported.

Meanwhile, according to the Citibanamex Expectations Survey, analysts expect Banxico to cut its rate again in June.

Services put pressure on pockets

The Inegi report showed that the component that put the most pressure on Mexicans' pockets was services, which has been in Banxico's sights.

In the first fortnight of the month, core inflation, which eliminates the price of the most volatile goods and services from its calculation, stood at 4.31% annually.

Internally, the prices of merchandise increased by 3.55% annually, while that of services by 5.23%.

For its part, non-core inflation stood at 6.27% annually in the first half of the month.

The above was understood by the increase in agricultural prices of 8.75% annually and 4.08% in energy prices and tariffs authorized by the government.