Inflation in Mexico slowed to 3.69% in December

Consumer inflation in Mexico slowed down at the end of last year, falling within the target range set by the Bank of Mexico (Banxico) and representing the lowest price increase for December since 2020, according to information released by the National Institute of Statistics and Geography (Inegi).

The National Consumer Price Index (INPC) reported a monthly variation of 0.28% at the end of 2025, bringing the annual inflation rate to 3.69%, down from 3.80% in the previous fortnight.

Thus, 2025 closed the year with the lowest inflation for a December since 2020, when, in the face of the COVID-19 pandemic and disruptions in supply chains, inflation stood at 3.15 percent.

The inflation figure surprised the market. According to a Reuters poll, inflation was expected to remain at 3.80% in December.

Inflation thus managed to close the year within the central bank's target range of 3% +/-1 percentage point; however, some institutions still see a long road ahead before it returns to the specific level of 3%.

The Inegi report noted that core inflation, which excludes goods and services with more volatile prices from its calculation, also slowed down during the month; however, it continued to put pressure on Mexican families' pockets.

In December, the core index stood at an annual rate of 4.33%, down from 4.43% in November.

Within this category, goods exerted the most pressure during the month, with annual inflation of 4.35%, while merchandise prices rose 4.30%.

On the non-core inflation side, the December figure was 1.61% annually, down from 1.73% last November.

Within this inflation, the price of agricultural products increased by only 0.88% annually in December, while the price of energy and government tariffs increased by 2.19%.