Mexico's annual inflation slowed in April for the first time this year, official data released Thursday showed, opening the door to interest rate cuts.
Consumer prices in Mexico rose 4.45% year-on-year in April, slowing from 4.59% in the previous month and below economists' forecasts in a Reuters poll of 4.50%.
The closely watched core inflation index also fell to 4.26% from 4.45% in March, slightly below expectations of 4.27%.
Mexico's Central Bank, also known as Banxico, is scheduled to announce its monetary policy decision later Thursday. In March, the central bank cut rates by 25 basis points, leaving the benchmark interest rate at 6.75%.
The market expects Banxico to complete the monetary easing cycle that began more than two years ago with a final 25 basis point cut in the base rate.
Inflation remains above the central bank's target of 3%, plus or minus one percentage point.