Inflation accelerates in Latin America's major economies in April

Mexico's inflation went up in April, reaching 4.65%, which is higher than expected. This means the central bank might not lower interest rates when they meet. The Bank of Mexico had cut interest rates in March, but with inflation rising, they might not cut rates again. The inflation has been above the target of 3%, plus or minus a percentage point. Economists say there is no sign that the central bank will cut rates based on the latest inflation data. In April, consumer prices in Mexico increased by 0.20%, mainly due to higher agricultural prices. The core inflation, which excludes volatile prices, rose by 0.21%, slightly below expectations. The annual core inflation also slowed down. This shows that inflation pressures are easing at the core level, but bad weather conditions are still affecting overall inflation. This might lead the central bank to keep interest rates steady. Brazil's inflation in April was 3.69%, slightly higher than expected. The central bank had recently reduced interest rates, but the pace of cuts slowed down. The decision caused concerns among investors, leading to a drop in shares and the currency value. The central bank aims to keep inflation within the target range, but global uncertainties and a stronger U.S. dollar are making them more cautious. In April, consumer prices in Brazil rose by 0.38%, higher than the previous month. Healthcare, food, and beverage costs went up, while services inflation decreased. Economists believe that inflation will remain under control, and the central bank might continue to cut interest rates gradually.