Inflation gave Mexico a break during the month of October. The national consumer price index (INPC) stood at 3.57% on an annual basis, after the indicator stood at 3.76% in September, according to data published this Friday by the National Institute of Statistics and Geography (Inegi). This is the second fortnight in which prices have remained unchanged without a significant increase.
The slight drop in data comes close to market estimates, which forecast inflation at 3.6% on an annual basis, due to the drop in prices in the agricultural sector. According to Inegi, the price of eggs, chicken, potatoes and other tubers, as well as green tomatoes, has decreased. While electricity, home ownership and air transport recorded increases. The increase in electricity, explains Inegi, is due to the withdrawal of the subsidy from the electricity tariff program for the summer season in 18 cities across the country.
Core inflation, which determines the trajectory of general inflation in the medium and long term, shows an annual increase of 4.28%. The increase in prices of education, food, drinks and tobacco, as well as some services, stands out. For its part, non-core inflation, which includes government and regulated rates, stood at 1.18% year-on-year.
The Bank of Mexico lowered its interest rate by 25 basis points on Thursday to 7.25%, given the slowdown in the Mexican economy. A week ago Inegi revealed that the gross domestic product (GDP) estimate for the third quarter of 2025 was down 0.3%, attributed to industry stagnation, especially in the manufacturing, energy and mining sectors. Uncertainty over Trump’s tariff war, the central bank acknowledged, has put pressure on inflation. The reduction in interest rates aims to stabilize prices and promote consumption.
