Mexico’s Inflation Rises in May 2025, Cinema and Fruits See Significant Price Hikes

Background on Inflation in Mexico

In May 2025, Mexico experienced a notable acceleration in inflation, with the annual inter-annual rate reaching 4.42%, according to data from Mexico’s National Institute of Statistics and Geography (Inegi).

Key Price Increases in May 2025

The National Consumer Price Index (INPC) increased by 0.28% between April and May, driven by price hikes in agricultural products, cinemas, housing, and cleaning supplies.

Top 10 Most Influential Products in May’s INPC

1. Papaya: +20.13%
2. Cinema: +15.45%
3. Chicken: +10.62%
4. Tomatoes: +10.03%
5. Potatoes and other tubers: +6.92%
6. Beef: +1.78%
7. Detergents and softeners: +1.73%
8. Restaurants: +0.52%
9. Street food vendors (taco shops, etc.): +0.52%
10. Own housing: +0.28%

Agricultural products are more volatile in the INPC due to structural and circumstantial factors affecting their production, distribution, and pricing. Seasonality, climate changes, logistics, and distribution chains can influence the prices of meats, processed meats, dairy products, fruits, and vegetables.

Price Decreases in May 2025

1. Electricity: -18.45%
2. Lemon: -10.48%
3. Air travel (flights): -7.58%
4. Packaged tourism services: -7.58%
5. Refrigerators: -3.76%
6. Other fruits: -3.48%
7. Tequila: -2.80%
8. Motorcycles: -1.94%
9. Eggs: -0.54%
10. Magna gasoline: -0.19%

Notably, electricity prices dropped significantly due to the start of a seasonal subsidy program for high temperatures in some Mexican cities. This results in considerable reductions in average electricity bills nationwide.

Regional Inflation Variations

Upon examining city-by-city data, inflation was more pronounced in Oaxaca, Veracruz, and the State of Mexico.

Conversely, some northern cities (in Sonora, Sinaloa, Tamaulipas, and Baja California) experienced price decreases.

Key Questions and Answers

• What caused the rise in Mexico’s inflation rate in May 2025? The acceleration was primarily due to increased prices in agricultural products, cinemas, housing, and cleaning supplies.
• Which products saw the most significant price hikes? Papaya (+20.13%), cinema (+15.45%), chicken (+10.62%), tomatoes (+10.03%), potatoes and other tubers (+6.92%), beef (+1.78%), detergents and softeners (+1.73%), restaurants (+0.52%), street food vendors (+0.52%), and own housing (+0.28%) experienced the most substantial increases.
• What factors contribute to the volatility of agricultural products in the INPC? Structural and circumstantial factors, such as seasonality, climate changes, logistics, and distribution chains, affect the production, distribution, and pricing of agricultural products.
• Which products experienced price decreases in May 2025? Electricity (-18.45%), lemon (-10.48%), air travel (-7.58%), packaged tourism services (-7.58%), refrigerators (-3.76%), other fruits (-3.48%), tequila (-2.80%), motorcycles (-1.94%), eggs (-0.54%), and Magna gasoline (-0.19%) all saw price reductions.
• Why did electricity prices drop significantly? The decrease was due to the implementation of a seasonal subsidy program for high temperatures in certain Mexican cities, leading to considerable reductions in average electricity bills nationwide.
• Were there regional differences in inflation rates? Yes, Oaxaca, Veracruz, and the State of Mexico experienced more pronounced inflation, while some northern cities (in Sonora, Sinaloa, Tamaulipas, and Baja California) saw price decreases.