Wednesday, May 28, 2025

Inflation rises for second straight month, but remains within Banxico target

Mexico’s annual headline inflation rate increased for a second consecutive month in March, but remains within the Bank of Mexico’s target range.

The national statistics agency INEGI reported Wednesday that the annual headline rate was 3.80% in March, up slightly from a 3.77% reading in February. Month-over-month inflation was 0.31%.

The annual headline rate was in line with the consensus forecast of analysts polled by Reuters.

The Bank of Mexico (Banxico) targets 3% inflation with tolerance of 1 percentage point in either direction. Despite the uptick in inflation, the central bank is still expected to make another cut to its key interest rate after its board’s monetary policy meeting on May 15.

In late March, Banxico cut its benchmark interest rate by 50 basis points to 9%, the lowest level since 2022.

While annual headline inflation ticked up in March, the annual core inflation rate, which excludes volatile food and energy prices, declined to 3.64%, just below the 3.65% reading in February. The core rate was also in line with market expectations.

Fresh food prices up nearly 5%

INEGI data showed that prices for agricultural products — fruit, vegetables and meat — were 4.87% higher in March than the same month last year.

Meat prices rose 9% in annual terms, while the cost of fruit and vegetables actually fell 2.28% compared to March 2024.

Processed food, beverages and tobacco were 4.15% more expensive in March than a year earlier, while the price of non-food goods rose 1.88% annually.

Mexicans paid 4.35% more for services in March compared to a year earlier, while the cost of energy, including gasoline and electricity, increased 2.94% annually.

With reports from El Economista and Reuters 

Have something to say? Paid Subscribers get all access to make & read comments.

8 members of Mexico’s National guard killed in landmine explosion

0
The troops were operating in an armored car along the Michoacán-Jalisco border, where two rival cartels are reportedly vying for control of the territory.
A parade of Jalisco security vehicles including a Tesla Cybertruck

US congratulates Jalisco State Police on its new Tesla Cybertruck fleet

0
The Jalisco state government bought the vehicles as part of a general security upgrade in advance of the 2026 World Cup, which will take place in Mexico, Canada and the U.S.
Protesters hold signs showing the faces of the disappeared on a rainy day in front of a Mexico City landmark

Families of disappeared Ayotzinapa students call for dismissal of special prosecutor

1
Sheinbaum recently rebuked Gómez — who faces accusations of embezzlement and bribery — for saying the government is "searching for corpses."