Overview of Mexican Producer Inflation in December 2025
According to data released by Mexico’s National Institute of Statistics and Geography (Inegi), the inflation rate for Mexican producers in December 2025 reached its lowest level since December 2019, before the COVID-19 pandemic. The National Index of Producers’ Prices (INPP) increased by 0.46% on a monthly basis and stood at an annual rate of 2.06%.
Historical Context and Relevance
The significance of this development lies in the fact that Mexican producers have experienced 10 consecutive months of price declines, with the December 2025 rate marking the lowest annual closing since 2019. This trend reflects a broader economic pattern influenced by factors such as stable exchange rates and crude oil prices.
Key Economic Indicators
- INPP (Including Oil): Monthly increase of 0.46%, annual growth of 2.06%
- Intermediate Goods and Services Index (Including Oil): Monthly increase of 0.48%, annual growth of 1.41%
- Final Goods and Services Index (Including Oil): Monthly increase of 0.46%, annual growth of 2.33%
Sector-wise Inflation Trends
The Inegi report highlights distinct inflation patterns across different economic sectors:
Primary Sector
The primary sector, which includes activities like fishing, livestock, agriculture, and hunting, experienced a monthly price drop of 0.21% in December 2025. This resulted in an annual price decrease of 3.78%.
Secondary and Tertiary Sectors
In contrast, the secondary and tertiary sectors showed price increases both monthly and annually in December 2025.
- Secondary Sector (Industries): Monthly increase of 0.25%, annual growth of 1.39%
- Tertiary Sector (Services): Monthly increase of 0.91%, annual growth of 4.09%
Notably, the construction industry saw the highest annual inflation rate of 3.93% in December 2025.
Among tertiary services, temporary accommodation and food preparation services experienced the highest annual inflation rate of 7.01% in December 2025.
Expert Analysis
Banco Base’s analysis suggests that the deceleration in producer inflation across most terciary subsectors could be linked to a slowdown in economic activity and reduced demand for these services.
Key Questions and Answers
- Q: What is the significance of the 2.06% inflation rate for Mexican producers in December 2025?
A: This rate represents the lowest annual closing since December 2019, indicating a prolonged period of price declines in various sectors. - Q: Which economic sectors experienced price increases in December 2025?
A: The secondary and tertiary sectors, including industries and services, showed price increases both monthly and annually. - Q: What factors might have contributed to the deceleration in producer inflation?
A: Factors such as stable exchange rates and crude oil prices, along with a general slowdown in economic activity, could have played a role.
