Mexican inflation likely to fall in April to lowest level since 2015: Reuters poll

FILE PHOTO: A man pushes a cart while passing business closed at a market amid the spread of the coronavirus disease (COVID-19), in Mexico City, Mexico April 22, 2020. REUTERS/Gustavo Graf/File Photo

MEXICO CITY (Reuters) - Mexico’s inflation rate through April likely fell to its lowest level in more than four years, according to a Reuters poll on Monday, which would provide the central bank with more flexibility to cut interest rates.

The average forecast from 14 analysts was for an inflation rate of 2.20% through the end of April, compared to 3.25% in March.

If the forecast proves accurate, it would mark the lowest rate since December of 2015, when average price increases reached 2.13%.

The estimated fall in the inflation rate is due to a drop in the price of energy and some agricultural goods.

Mexico’s national statistics agency INEGI will publish the official inflation data for April on Thursday.

Last month, Mexico’s central bank cut its benchmark interest rate 50 basis points to 6.0% at a non-scheduled policy meeting, as it also announced additional measures to boost financial system liquidity.

The bank’s next monetary policy meeting is scheduled for May 14.

So far this month, inflation is seen at negative 1.02%, according to the same poll, while core inflation, which strips out some volatile energy and food prices, is expected to rise 0.32%, according to the average forecast.

Annualized core inflation is estimated at 3.47%.

Reporting by Miguel Angel Gutierrez; Editing by Paul Simao