Mexico Inflation Rate Picks Up as Expected

Mexico’s annual inflation rate rose to 3.45% in September 2026, the highest level since May, up from 3.26% in August. The reading was broadly in line with market expectations but moved further above Banxico’s 3% target. Energy inflation accelerated sharply to 1.48% from 0.81%, while price growth also increased for transportation (3.51% vs. 3.43%) and housing and utilities (3.33% vs. 3.06%). Food inflation rose to 2.55% from 1.49%, its highest level since May, adding further upward pressure. In contrast, inflation for restaurants and hotels slowed to 6.19% from 6.27%. Core inflation also eased further to 3.75% from 3.88%. From the previous month, consumer prices rose 0.42%, accelerating from a 0.20% increase in August.

Mexico's annual inflation rate quickened for the first time in five months to 3.26% in August 2026 from 3.12% in the previous month. The reading came broadly in line with market expectations, although moving away from Banxico's 3% target. Inflation accelerated sharply for food products, rising to 1.49% from 0.78% in July, and transport, which edged up to 3.43% after a 3.21% rise. Additional upward pressure was due to higher inflation for clothing and footwear (2.16% vs 1.6%), recreation and culture (3.85% vs 3.63%) and education (6.02% vs 5.91%). Energy inflation, however, slowed sharply to 0.81% from 1.16%, while inflation also softened for housing and utilities (3.06% vs 3.23%). Core inflation also eased, slowing to 3.88% from 3.95%. On a monthly basis, consumer prices rose 0.2%, accelerating from a 0.03% rise in the prior month.

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.