Energy costs led the retreat, falling 2.98% as summer electricity subsidies expanded into additional cities. These government-backed rate cuts, which vary by region through September or October, provided immediate relief for household budgets. Meanwhile, the core CPI rose 0.22% in May, bringing the annual core rate to 4.19%, its slowest pace since May 2025.

The Bank of Mexico, which manages a 3% inflation target, recently lowered its benchmark interest rate to 6.5%. Market analysts view the latest data as a justification for the central bank’s decision to pause further cuts. According to Nikos Tzabouras of Tradu, the current inflation print reinforces a holding stance, as the cooling figures remove pressure for immediate tightening while keeping further rate reductions off the table for the near term.