Inflation Decelerates Sharply

Mexico's annual inflation rate dropped to 3.94% in May 2026, the National Institute of Statistics and Geography (INEGI) reported on June 9. The Consumer Price Index fell 0.21% from the previous month.

The figure represents a meaningful decline from April's 4.45% and May 2025's 4.42%, according to El Sol de México. The core inflation index, which tracks the underlying price trend, came in at 4.19%, with goods rising 0.16% monthly and services up 0.29%. Non-core inflation stood at 3.10%.

What Went Up, What Came Down

Potatoes and other root vegetables led price increases during the month, along with housing costs, restaurant meals, and LP gas. Electricity, green tomatoes, and eggs saw price declines. The reading confirms a deceleration trend after several months hovering near the central bank's target ceiling, according to INEGI's official report.

Central Bank Holds Steady

Banxico closed its rate-cutting cycle on May 7 with the benchmark rate at 6.50% and signaled it would maintain that level. May's inflation data will factor into the next monetary policy decision, scheduled for late June.

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