Mexico Inflation Rate Moderates at Year-End

The annual inflation rate in Mexico rose to 4.02% in February of 2026 from 3.79% in the previous month, firmly ahead of market expectations of 3.94% to mark the highest inflation rate since June of the previous year. While not a significant overshoot, it was also the first month of inflation above the Bank of Mexico's upper threshold of 4% in the period. Consumer prices rose sharply for processed food and beverages (6.2%) and fruits and vegetables (9.88%). Inflation was also significant for services (4.45%), which is seen as part of the underlying inflation trend by Banxico. From the previous month, consumer prices were 0.5% higher.

Mexico’s annual inflation rate rose to 3.79% in January 2026 from 3.69% in the previous month, below market expectations of 3.82%. Price pressures were strongest in other services (7.68%), a category that includes street food outlets, restaurants and similar venues, mobile phone services, car maintenance, medical consultations and packaged tourism services. Inflation was also elevated in healthcare and personal care (5.37%) and food, beverages and tobacco (4.43%). Prices for clothing, footwear and accessories increased 2.82%, while housing costs rose 2.91%. The smallest increases were recorded in furniture and household appliances (1.38%) and transport (1.58%). On a monthly basis, consumer prices rose 0.38%.

Mexico’s annual inflation rate eased to 3.69% in December 2025 from 3.80% in November, coming in below market expectations of 3.80%. Price pressures were strongest in restaurants and lodging (7.35%), education services (5.81%), personal care, social security and miscellaneous goods (5.79%), and healthcare (5.02%). More moderate inflation was recorded in information and communication (0.05%), insurance and financial services (0.93%), and transport (1.78%). No category posted deflation in December. On a monthly basis, consumer prices rose 0.28%, slowing sharply from a 0.66% increase in November. Core inflation also cooled slightly, easing to 4.33% from 4.43% in the prior month.