MEXICO CITY, May 4 (Reuters) – Mexican inflation is expected to have eased in April, a Reuters poll showed on Monday, giving Mexico’s central bank more room to cut its key interest rate this week and likely end a prolonged cycle of monetary easing.
• The median estimate from 12 analysts projected annual headline inflation falling to 4.50% in April, from 4.59% in March.
• A decline in headline inflation would break three consecutive months of upticks.
• On a monthly basis, headline consumer prices are estimated to have risen by 0.25% in April, according to the poll.
• The annual core inflation rate, considered a better measure of price trends because it excludes highly volatile items, is also estimated to have fallen to an estimated 4.27% from 4.45% last month.
• It would mark the third consecutive month of decline for the core rate.
• On a monthly basis, core prices were seen rising 0.31%.
• Official inflation data for April will be released on Thursday morning, hours before Mexico’s central bank announces its monetary policy decision.
• The market expects the Bank of Mexico to end a monetary easing cycle that started over two years ago with a final 25-basis-point cut to the benchmark rate at its meeting on Thursday.
(Reporting by Gabriel Burin in Buenos Aires; Writing by Noé Torres; Editing by Brendan O’Boyle)
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