Mexico Inflation Rate Slows to Over 6-Year Low

2026-08-07 12:10 By Luisa Carvalho 1 min. read

Mexico's annual inflation rate eased to 3.12% in July from 3.37% in June, marking its lowest level since May 2020 and matching market expectations.

The reading brought inflation closer to Banxico's 3% target, within a tolerance range of ±1 percentage point.

There was a broad-based slowdown in prices, including for food and non-alcoholic beverages (0.78% vs 1.66% in June), housing and utilities (3.23% vs 3.34%), and transportation (3.21% vs 3.36%).

Energy inflation also edged down to 1.16% from 1.39%, while services inflation eased to 4.36% from 4.49%, although it remained elevated.

Slower price increases were also recorded for alcoholic beverages and tobacco (7.34% vs 7.66%), insurance and financial services (6.41% vs 6.74%), restaurants and hotels (6.37% vs 6.63%), education services (5.91% vs 5.93%), healthcare (4.80% vs 4.84%), and recreation, sport and culture (3.63% vs 3.73%).

Annual core inflation rate fell to 3.95%, the lowest since April 2025.

Monthly, the CPI was almost flat.



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Mexico Inflation Rate Slows to Over 6-Year Low
Mexico's annual inflation rate eased to 3.12% in July from 3.37% in June, marking its lowest level since May 2020 and matching market expectations. The reading brought inflation closer to Banxico's 3% target, within a tolerance range of ±1 percentage point. There was a broad-based slowdown in prices, including for food and non-alcoholic beverages (0.78% vs 1.66% in June), housing and utilities (3.23% vs 3.34%), and transportation (3.21% vs 3.36%). Energy inflation also edged down to 1.16% from 1.39%, while services inflation eased to 4.36% from 4.49%, although it remained elevated. Slower price increases were also recorded for alcoholic beverages and tobacco (7.34% vs 7.66%), insurance and financial services (6.41% vs 6.74%), restaurants and hotels (6.37% vs 6.63%), education services (5.91% vs 5.93%), healthcare (4.80% vs 4.84%), and recreation, sport and culture (3.63% vs 3.73%). Annual core inflation rate fell to 3.95%, the lowest since April 2025. Monthly, the CPI was almost flat.
2026-08-07
Mexico Inflation Falls to Lowest Since 2020
Mexico's annual inflation rate eased to 3.37% in June 2026 from 3.94% in May, the lowest reading since December 2020. The figure came in slightly below market expectations of 3.52% and remained within the Bank of Mexico's target tolerance range of one percentage point away from 3%. The strongest price increases were recorded in alcoholic beverages, tobacco, and narcotics (7.66%), insurance and financial services (6.74%), restaurants and lodging (6.63%), educational services (5.93%), healthcare (4.84%), and recreation, sport, and culture (3.73%). Energy inflation remained relatively subdued at 1.39% as oil prices had returned to pre-conflict levels following easing geopolitical tensions. Transport prices rose 3.36%, utilities increased 3.34%, and food prices advanced 1.66%. Meanwhile, core inflation eased to 4.03%. On a monthly basis, consumer prices fell 0.27%, following a 0.20% decline in May.
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Mexico Inflation Eases to 4-Month Low
The annual inflation rate in Mexico eased to 3.94% in the second half of May of 2026 from 4.45% in the corresponding period of the previous month, the lowest in four months. It was slightly under market expectations of 4.02%, marking the return to the Bank of Mexico's tolerance band of one percentage point away from 3%. Inflation was muted for energy (3.27%) despite the surge in oil, natural gas, and coal prices globally since the outbreak of war in the Middle East, largely due heavy fuel tax credits and price caps implemented by the Mexican government. Meanwhile, inflation was also tame for core goods (3.78%) as non-food core goods (2.84%) was lower than core food goods (5.13%). In turn, inflation for services was higher (4.57%). From the previous month, the Mexican CPI fell by 0.2%, the first decline in two years, as the energy subsidies were expanded and drove energy prices to ease from the initial reaction to the war.
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