Mexico’s inflation falls to its lowest level since 2020

Inflation successful Mexico moderated again during the archetypal fractional of July — the eighth consecutive 15-day play successful which the complaint declined — settling adjacent to the Bank of Mexico’s target. 

The nationalist statistic institute INEGI connected Thursday reported that the National Consumer Price Index roseate 0.07% compared to the 2nd fractional of June, bringing the yearly header ostentation complaint to 3.10%. This is the lowest for immoderate quincena, arsenic the half-month play is known, since the 2nd fractional of December 2020.

The graphic from Mexico’s nationalist statistic institute, titled Variation of the National Consumer Price Index, shows however overmuch ostentation roseate during the archetypal 2 weeks of July for each of the past 10 years. (INEGI)

The information reflected a slowdown compared to the 3.37% yearly complaint recorded for the period of June. It besides compared favorably connected an yearly basis. During the archetypal quincena of July 2025, the bi-weekly ostentation complaint was 0.15% and the yearly complaint was 3.55%.

INEGI recovered that the smaller terms summation successful aboriginal July was chiefly related to the behaviour of the non-core component, which includes volatile prices specified arsenic cultivation products, vigor and government-regulated tariffs. 

This scale decreased by 0.23% during the quincena and registered a maturation of conscionable 0.21% compared to the aforesaid play past year.

Prices for cultivation products fell 0.57% biweekly and accumulated a year-on-year driblet of 3.53%. Within this group, fruits and vegetables decreased 1.50% compared to the 2nd fractional of June.

Tomatoes contributed the astir to containing inflation, with a bi-weekly terms simplification of 13.18%, portion serrano peppers (5.17%), tomatillos (3.24%) and avocados (2.59%) besides saw terms decreases.

Core inflation, which excludes the astir volatile nutrient and substance prices and is intimately monitored by the cardinal slope arsenic a amended indicator of the medium-term terms trajectory, roseate somewhat to 3.95% year-on-year, up from 3.94% successful June.

Within this constituent — which accrued by 0.16% during the archetypal fractional of July — goods prices roseate by 3.52% annually, portion services became 4.36% much expensive.

Processed foods, beverages and baccy registered an yearly ostentation of 4.89%; tuition fees accrued 5.95%, portion the remaining services (restaurants, aesculapian consultations, telephone and tourer activities) accrued by 4.83%.

With this latest reading, user prices person moderated for 8 consecutive fortnights, including 4 quincenas that deed the cardinal bank’s ostentation people of betwixt 3 and 4%.

After its June 24-25 monetary argumentation meeting, successful which it near the benchmark involvement complaint unchanged astatine 6.50%, the cardinal slope indicated that it volition await clearer signs that ostentation is converging steadily toward the target.

With reports from La Jornada, Expansión and El Financiero