UPDATE 1-Mexico consumer prices fall 0.32 pct in April

(Recasts, adds details from report)

MEXICO CITY, May 7 (BestGrowthStock) – Mexican consumer prices fell
more than expected in April, pushing the annual inflation rate
down to its lowest level in over two years and easing pressure
on the central bank to raise interest rates.

Prices (MXINFL=ECI: ) fell 0.32 percent in April, leaving
annual inflation at 4.27 percent (MXCPIA=ECI: ), the central bank
said on Friday.

Many analysts expect the central bank to raise interest
rates as soon as the fourth quarter of this year to fight
inflation, which remains above the central bank’s 3 percent
target.

But the data shows annual inflation falling for the first
time this year in the monthly reading. Prices fell for
electricity, tomatoes and tourism packages, the bank said.

Analysts polled by Reuters had expected headline inflation
to decline 0.17 percent.

Closely watched core inflation (MXCPIX=ECI: ), which strips
out some volatile food and energy prices, rose 0.11 percent
during the month, also less than the 0.13 percent increase in
the Reuters poll.

Investing Analysis

(Reporting by Jason Lange and Noel Randewich; Editing by
Theodore d’Afflisio)

UPDATE 1-Mexico consumer prices fall 0.32 pct in April