Data from the national statistics agency showed consumer prices
rose by 2.08% in the year through early April, undershooting a
Reuters poll forecast of 2.19%.
That was the lowest level since a rate of 2.00% in December
2015. Nevertheless, the core inflation index, which strips out
some volatile food and energy costs, stood at a rate of 3.40%,
slightly above the 3.36% forecast by the poll.
Mexican inflation was 3.25% in March.
Mexico's economy is expected to suffer its biggest contraction
in years in 2020 due to the impact of the novel coronavirus, and
the central bank on Tuesday cut its benchmark lending rate by 50
basis points to 6%.
Still, Mexico's key interest rate is far higher than in the
leading western economies, and analysts expect borrowing costs
to fall further in the months ahead.
The central bank targets an inflation rate of 3% with a
tolerance of one percentage point above or below that.
The latest data showed consumer prices fell 0.72% during the
first half of April compared with the previous two-week period.
The core price index climbed 0.20% over the period.
(Reporting by Dave Graham; Editing by Steve Orlofsky)
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