Mexico’s Consumer Inflation Rises 0.06% in August

Mexico’s consumer inflation accelerated slightly in August, according to data from the National Institute of Statistics and Geography (INEGI).

The National Consumer Price Index (INPC) rose 0.06% month-on-month, pushing annual inflation to 3.57%, up from 3.51% in July. The figure was marginally below market expectations, with a Reuters poll forecasting 3.58%.

Inflation remained within Mexico’s Central Bank (Banxico) target range of 3% ± 1 percentage point for the second consecutive month. Banxico lowered its benchmark interest rate by 25 basis points in August, bringing it to 7.75%, a smaller cut compared with previous adjustments.

INEGI’s report showed non-core inflation rose to 1.38% annually, up from 1.14% in July. Agricultural products increased 1.21%, although fruit and vegetable prices fell 8.04%. Energy and government-regulated tariffs rose 1.51%.

Core inflation, which excludes volatile items and is closely monitored by Banxico, remained at 4.23%. Goods prices rose 4.05%, while services increased 4.40%.

Products with the largest impact on households included housing (+0.27% monthly) and food services (+0.63%), including small eateries and taco shops. The price of serrano peppers surged 34.95% in the month.

Meanwhile, some items eased inflationary pressure: chicken fell 4.02%, tomatoes declined 11.46%, and air transport dropped 9.76%.