Inflation in Mexico Slowed Down in December
The closing week of 2025 brought forth significant economic indicators for Mexico, offering insights into how the year ended and what to expect in 2026. Among the released data were industrial activity figures, inflation, consumer confidence, and employment statistics.
For the United States, sectoral reports and labor market and trade balance data were detailed. Meanwhile, in the Eurozone, annual preliminary inflation information for the region was published to assess price evolution by year-end 2025.
Mexico’s Consumer Inflation Decelerated in December
2025 concluded with the lowest inflation for a December since 2020, when the COVID-19 pandemic and supply chain disruptions led to an inflation rate of 3.15%. The National Institute of Statistics and Geography (INEGI) reported that Mexico’s consumer inflation ended 2025 with a deceleration, placing it within the Banco de México (Banxico) target range.
The National Consumer Price Index (INPC) showed a monthly variation of 0.28% in December, resulting in an annual inflation rate of 3.69%, lower than the previous 3.80%.
Producer Inflation in Mexico Ended 2025 at 2.06%
Mexico’s producer inflation closed the year at its lowest level for a December since 2019, according to INEGI data. Including oil, the National Index of Producers’ Prices (INPP) had a monthly increase of 0.46%, resulting in an annual rate of 2.06%.
This marked the tenth consecutive month of declines in producer inflation in Mexico.
Banco de México Considers Revaluing Inflation Outlook
Four out of five members of the Banco de México (Banxico) Governing Board deemed it appropriate to reassess the inflation outlook and adopt a wait-and-see approach before continuing with the interest rate reduction cycle in their December monetary policy decision.
According to the minutes of that policy decision, the last of 2025, dissenting member Jonathan Heath considered that during the upcoming pause, “there should be an evaluation of the possibility of later increasing the target rate again”—only if they observe that convergence is not achieved.
Mexican Peso and Stock Markets
The Mexican peso ended the January 9 trading session at 17.9836 units per dollar. Compared to the previous close of 17.9846 units, this represented a marginal improvement of less than a cent, according to official Banxico data.
The dollar’s movement ranged from a high of 18.0412 units to a low of 17.9506 units. The DXY, from the Intercontinental Exchange, which compares the US dollar to six currencies, rose 0.26% to 99.13 units.
Despite stability in the last session of the week, the peso’s weekly balance was negative. Against a closing rate of 17.9142 units on the previous Friday, this signified a loss of 6.94 centavos or 0.39%, according to official Banxico data.
Mexican Stock Exchanges
Mexico’s stock exchanges closed with gains on this Friday. The principal reference reached a new historical high in a week marked by US labor figures and increased bets on a pause to Fed rate cuts.
The leading index, the S&P/BMV IPC from the Mexican Securities Exchange (BMV), which groups the most traded local stocks, gained 0.83% to 66,062.62 points, while the FTSE BIVA from the Institutional Securities Exchange (Biva) rose 0.85% to 1,306.27 points.
Most values closed with gains within the reference index. Grupo México, a mining company, led with a 3.81% increase to 182.98 pesos, followed by Grupo Bimbo with a 3.25% rise to 62.6 pesos, and Industrias Peñoles, another mining company, with a 2.86% gain to 987.3 pesos.
The first full week of 2026 yielded positive results for the Mexican stock market. The S&P/BMV IPC surpassed 66,000 points for the first time and marked a new historical high. The FTSE BIVA crossed 1,300 points for the first time and also reached a record.
Wall Street Indices
The three main indices on Wall Street closed with gains in Friday’s trading. Averages rose, and the S&P 500 reached a new record after the release of labor data that reinforced the bet on a pause to Fed interest rate cuts.
The Dow Jones Industrial Average, comprising the shares of 30 major companies, gained 0.48% to 49,504.07 units, while the S&P 500 of the most valuable companies rose 0.65% to 6,966.28 units. The Nasdaq Composite advanced 0.81% to 23,671.35 units.
In the first week of the year, all three indices reported positive performance. The Dow Jones accumulated a gain of 2.32%, the S&P 500 registered a 1.57% gain, and the Nasdaq advanced 1.88%, supported by technology stocks.
