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Mexico: Inflation declines to lowest level since December 2020 in July
Latest reading: Inflation decelerated to 3.5% in July (June: 4.3%), returning to the Central Bank’s 2.0–4.0% target range. July’s figure represented the lowest inflation rate since December 2020 and was largely in line with market expectations. Looking at the details of the release, the moderation was driven by softer price pressures for food, beverages and tobacco and easing price pressures for transportation. Moreover, prices for education and recreation grew at a more subdued pace.
Accordingly, the trend pointed down, with annual average inflation coming in at 4.2% in July (June: 4.4%). Meanwhile, core inflation was steady, coming in at June’s 4.2% in July.
Lastly, consumer prices rose 0.27% over the previous month in July, which was below the 0.28% rise recorded in June. July’s result marked the weakest reading since September 2024.
