FX.co ★ Mexico Inflation Falls to Lowest Since 2020

Mexico’s annual inflation rate slowed to 3.37% in June 2026, down from 3.94% in May, marking the lowest level since December 2020. The result came in slightly below market expectations of 3.52% and stayed within the Bank of Mexico’s target tolerance band of plus or minus one percentage point around 3%. The sharpest price increases were seen in alcoholic beverages, tobacco, and narcotics (7.66%), insurance and financial services (6.74%), restaurants and lodging (6.63%), educational services (5.93%), healthcare (4.84%), and recreation, sport, and culture (3.73%). Energy inflation remained relatively moderate at 2.97%, as oil prices returned to pre-conflict levels amid easing geopolitical tensions. Transport prices rose 3.36%, utilities increased 3.34%, and food prices were up 1.66%. Meanwhile, core inflation slowed to 4.03%. On a monthly basis, consumer prices fell 0.27%, following a 0.20% decline in May.