Key Factors Driving October 2025 Inflation: Rising Electricity Costs and Falling Egg Prices

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October 23, 2025

a high voltage power line with the sun shining through the wires below it and the sun shining throug

Introduction

In the first half of October 2025, rising electricity costs significantly contributed to inflationary pressures in Mexico. Meanwhile, the prices of various goods, including eggs, tomatoes, and bell peppers, experienced notable declines. This article delves into the specific products influencing October 2025 inflation and their respective impacts on consumers.

Electricity: A Major Inflation Driver

According to the National Consumer Price Index (INPC), electricity played a significant role in the rise of prices during the first half of October 2025. The increase can be partly attributed to the termination of seasonal warmth electricity tariff programs in several cities.

Transportation: A Moderate Inflationary Factor

Air transportation had a quinquennial impact of 0.026, with an 11.59% price variation.

Housing: A Minor Inflationary Contributor

Own housing contributed with a quinquennial impact of 0.019, registering a 0.14% quinquennial variation.

Other Notable Influencers

Apart from electricity, air transportation, and housing, other products and services with smaller impacts but still significant include:

  • Packaged tourism services: Quinquennial impact of 0.013.
  • Street food vendors (loncherías, fondas, torterías, and taquerías): Quinquennial impact of 0.013.
  • Professional services: Quinquennial impact of 0.013.
  • Onions: Quinquennial impact of 0.011.
  • Beef: Quinquennial impact of 0.010.

The quinquennial impact of a generic product is calculated using its weights, relative prices, and respective variations, directly showing how much each component contributes to overall inflation.

Products with the Most Significant Price Declines

During the first half of October 2025, the following products experienced the most substantial price reductions:

  1. Eggs: Quinquennial impact of -0.022 percentage points, with a quinquennial price variation of -2.13%.
  2. Chicken: Quinquennial impact of -0.017, with a price variation of -0.95%.
  3. Tomatoes: Quinquennial impact of -0.016, with a price drop of -3.34%.
  4. Potatoes and other tubers: Quinquennial impact of -0.013, with a price decline of -4.93%.

Key Questions and Answers

  • What products most influenced October 2025 inflation? Electricity costs, air transportation, and own housing were major contributors. Other notable influencers included packaged tourism services, street food vendors, professional services, onions, and beef.
  • Which products experienced the most significant price declines? Eggs, chicken, tomatoes, and potatoes and other tubers had the most substantial price reductions.