MEXICO CITY, June 8 (Xinhua) -- Mexican President Andres Manuel Lopez Obrador on Thursday hailed here the current strength of the Mexican peso against the dollar and declining inflation, saying it was partly due to policies to contain prices.

"We will continue to be careful that inflation does not increase," Mexico's president said at a press conference. "When there is inflation, income is greatly affected. Salaries can be increased, but if there is a rise in inflation, you lose purchasing power."

To counter the rise in prices affected by inflation, the Bank of Mexico opted to raise interest rates. At the same time, he said the government agreed with producers and sellers to offer the basic basket of goods at "fair" prices.

He added that government measures to cap fuel and electricity prices have also helped fight inflation.

He also emphasized that the Mexican peso is the "strongest currency in the world against the dollar," which is quoted at 17.55 pesos, the best level recorded since 2016.

The National Institute of Statistics and Geography (Inegi) reported Thursday that inflation in Mexico was 5.84 percent year-on-year as of May. A report by the Banorte Financial Group noted inflation was below 6 percent for the first time since August 2021.

Mexico closed 2022 with inflation of 7.82 percent, its highest level in two decades. The Bank of Mexico has set target inflation at 3 percent and expects to meet the target by the end of 2024.