Mexico’s inflation hits four-year low

Published 07/02/2025, 14:24
Mexico’s inflation hits four-year low

Investing.com -- Mexico’s inflation rate has eased to a four-year low in January, according to the statistics institute Inegi. The consumer price index (CPI) increased by 0.29% last month, reducing the 12-month inflation rate to 3.59% from 4.21% in December.

This shift was primarily due to lower fresh-food prices and a seasonal decrease in some services, which counterbalanced the rises in core goods prices.

The Core CPI, which does not consider energy and agricultural prices, saw a rise of 0.41% in January. This figure represents a 3.66% increase from a year earlier, a rate almost identical to that at the end of last year.

In January, an increase in prices for items such as gasoline, diners, and cigarettes was offset by a decrease in the cost of fruits and vegetables, and services like airfares and vacation packages. The latter decrease is attributed to the conclusion of the holiday season.

In response to the lowest inflation rate since January 2021, the Bank of Mexico announced a reduction in its benchmark interest rate on Thursday. The rate was cut by half a percentage point to 9.5%, following four consecutive quarter-point reductions.

The central bank, which is also monitoring the economic growth slowdown, suggested that additional half-point cuts might be implemented in future meetings.

The Bank of Mexico anticipates a gradual easing of inflation to reach its 3% target in the third quarter of 2026.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.