Mexico inflation close to resuming decline toward target, governor says

April 28 (Reuters) - The ‌Bank of ​Mexico ​expects inflation will soon resume a gradual decline towards the bank's 3% ‌target despite a recent jump in ⁠the prices of some fruits and vegetables, the central ‌bank's governor, Victoria Rodriguez, ‌said on Tuesday.

In an address before a Senate committee, Rodriguez said the bank's board ​was close to finish a rate cutting cycle that began in early 2024, ⁠and that the board would consider making one last cut ​at its next monetary policy meeting in May.

Last month, the board lowered the ​bank's benchmark interest rate by ‌25 basis points to 6.75% in a contentious 3-2 vote.

Minutes from the ⁠bank's March meeting showed the bank's board is deeply divided as it weighs fears of resurgent ⁠inflation and Middle East conflict against the needs of ​a sluggish economy.

Mexico's annual inflation rate slowed in the first half of April, albeit less than had ‌been expected, to 4.53%, after jumping in March. The central bank ‌targets inflation at 3.0%, with a range ⁠of tolerance of plus ‌or minus one ​percentage point.

(Reporting by Ana Isabel Martinez and Brendan O'Boyle; Editing by Emily ‌Green)

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