UPDATE 1-Mexico inflation close to resuming decline toward target, governor says

​The Bank of ‌Mexico expects inflation ​will soon resume a gradual decline towards the bank's 3% target despite a ‌recent jump in the prices of some fruits and vegetables, the central bank's governor, Victoria Rodriguez, said on Tuesday.

In an address before ‌a Senate committee, Rodriguez said the bank's board was close ‌to finish a rate cutting cycle that began in early 2024, and that the board would consider making one last cut at its next ⁠monetary ​policy meeting ⁠in May. Last month, the board lowered the bank's benchmark interest rate by 25 ⁠basis points to 6.75% in a contentious 3-2 vote. Minutes from ​the bank's March meeting showed the bank's board is deeply ⁠divided as it weighs fears of resurgent inflation and Middle East conflict ⁠against ​the needs of a sluggish economy. Mexico's annual inflation rate slowed in the first half of April, albeit less ⁠than had been expected, to 4.53%, after jumping in March. The central ⁠bank ⁠targets inflation at 3.0%, with a range of tolerance of plus or minus one percentage point.

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