Mexico Inflation Slowed Much More Than Expected in May (1)

Mexican inflation slowed much more than expected in May and back into the central bank’s target range, substantiating policymakers’ decision to again cut interest rates at their meeting last month.

Consumer prices rose 3.94% in May compared with the same month last year, according to the national statistics institute. The reading came in below the estimate of all analysts surveyed by Bloomberg and down from 4.45% in April.

Core inflation, which excludes volatile food and fuel prices and is closely watched by the central bank, slowed to 4.19% from a year ago, compared with April’s 4.26% reading, and lower than ...