Mexico: Inflation Falls

Mexico’s core inflation rate fell to 3.41 percent in May, the lowest rate since the central bank began calculating the index in 1983. The central bank has raised the benchmark loan rate in 12 of the past 15 months to 9.75 percent. Mexico’s $677 billion economy grew 2.4 percent in the first quarter, down sharply from the previous quarter, dragged by the interest-rate increases and lowered US demand for Mexican exports.