During the first half of 2025, inflation in Mexico stood at 3.69 percent annually, showing a slight decrease from the previous year's close, when it was recorded at 3.99 percent annually, according to data from INEGI. This drop in prices has led inflation to remain moderate for five consecutive fortnights, reaching its lowest point since February 2021.
The National Consumer Price Index (INPC) had a slight increase of 0.20 percent fortnightly in the first half of January, marking the lowest advance for the same period since 2019. It is noteworthy that this inflation report is considered relatively benign, attributed to the slowdown in domestic demand, restrictive financial conditions, and favorable climatic patterns.
On the other hand, it has been observed that during this period, the inflation of goods has experienced an increase, standing at 2.75 percent annually and marking its third consecutive period of growth. Despite lower pressure on fruits and vegetables, there has been an increase in food commodity prices, accelerating to 3.83 percent annually.
Regarding energy prices, there has been an acceleration in inflation, reaching 6.42 percent annually in the first half of the year, the highest figure since September of last year. In this respect, some experts indicate that underlying pressures are increasing, which could generate concern among certain members of Banxico.
The moderation of inflation has been influenced by the non-core component, which slowed to 3.60 percent annually, down from 4.91 percent annually in the second half of December. On the other hand, core inflation, which excludes volatile prices, has accelerated for the third consecutive fortnight, reaching 3.72 percent annually.
In the context of non-core inflation, agricultural product prices have managed to moderate, registering at 1.06 percent annually, representing a decline from previous periods. This decrease is largely due to the category of fruits and vegetables, where a deflation of -6.11 percent annually has been observed.
Meanwhile, on the core side, services have contributed to the moderation of prices, showing a rate of 4.82 percent annually, after accelerating at the end of the previous year.
