Background on Inflation in Mexico
Inflation in Mexico has managed to slow down, staying within the national monetary policy target range of 3% ± 1 percentage point, according to the National Consumer Price Index (INPC).
Key Figures and Trends
- The annual interanual growth rate of the INPC was 3.63% nationwide during the first half of October 2025.
- This marks a deceleration compared to the previous period, when the rate was 3.78%.
- Although experts and financial organizations anticipated a slowdown in price levels, the actual result surpassed expectations.
Components of INPC and Their Behavior
The behavior of the Índice Nacional de Precios al Consumidor (INPC) showed moderation in both components:
- Non-underlying component: This part includes highly volatile items such as energy and agricultural products.
- Underlying component: This part comprises the rest of services and goods.
Impact and Relevance
The Mexican central bank, Banxico, aims to keep inflation within the target range to maintain price stability and support sustainable economic growth. By keeping inflation under control, Banxico ensures that Mexicans can plan their finances more effectively and reduces the risk of inflation-induced economic instability.
Mexico’s inflation rate is closely watched by investors, businesses, and the general public due to its direct impact on purchasing power, interest rates, and overall economic conditions. A stable inflation rate encourages both domestic and foreign investment, fostering economic growth.
Who is Banco de México (Banxico)?
Banco de México, commonly known as Banxico, is Mexico’s central bank and is responsible for implementing monetary policy. Established in 1925, Banxico aims to maintain price stability and support the country’s financial system’s efficiency. Its primary objectives are to ensure monetary stability, promote sustainable economic growth, and supervise financial institutions.
Key Questions and Answers
- What is the current inflation rate in Mexico? The annual interanual growth rate of the INPC was 3.63% during the first half of October 2025.
- Why is controlling inflation important for Mexico? Controlling inflation ensures price stability, supports sustainable economic growth, and helps Mexicans plan their finances more effectively.
- Who is responsible for managing inflation in Mexico? Banco de México (Banxico), the country’s central bank, is responsible for implementing monetary policy to keep inflation within its target range.
