FX.co ★ Mexico Inflation Rate Rises to 8-Month HIgh

Mexico’s annual inflation rate accelerated to 4.02% in February 2026, up from 3.79% in January and slightly above market expectations of 3.94%, reaching its highest level since June of the previous year. Although the overshoot was not large, it marked the first time in this period that inflation exceeded the Bank of Mexico’s upper target limit of 4%. The increase was driven in particular by strong price gains for processed food and beverages (6.2%) and for fruits and vegetables (9.88%). Inflation in services also remained elevated at 4.45%, a component closely watched by Banxico as an indicator of underlying inflationary pressures. On a monthly basis, consumer prices rose by 0.5%.