Mexico’s Inflation Accelerates in March but Stays Within Target Range

Mexico’s inflation rose for the second consecutive month in March, reaching an annual rate of 3.80%, according to official data from INEGI. Despite the increase, inflation remained within the Bank of Mexico’s target range of 3% ± 1 percentage point.

This marks the third straight month within this range after years of exceeding it due to persistent price pressures. The National Consumer Price Index (INPC) recorded a monthly increase of 0.31% in March.

Analysts had anticipated the slight acceleration, as inflation edged up from February’s 3.77%. Core inflation, which excludes volatile items like energy and fresh food, eased slightly to 3.64% from 3.65% in February. Merchandise prices rose by 2.98%, while service costs increased by 4.35%.

Non-core inflation, however, climbed to 4.16% annually, up from February’s 4.08%. Agricultural product prices surged by 4.87%, while energy and government-regulated tariffs saw a smaller rise of 2.94%.

Key contributors included soaring prices for lemons (20.75%), green tomatoes (17.56%), and avocados (7.16%). Meanwhile, gasoline prices dropped by 1.63%, and onions and potatoes saw significant price declines of 13.44% and 4.81%, respectively.

The inflationary trend affects households already grappling with higher costs for essentials like food and services, with restaurant prices rising by 0.57% and airfares jumping by 10.90%. Despite this, Banxico recently cut its benchmark interest rate to 9%, signaling confidence in inflation control.

Global economic uncertainties and domestic price pressures continue to challenge Mexico’s economy, but inflation staying within target offers cautious optimism for policymakers and businesses navigating these conditions.

More: Latin America news in English, every day from The Rio Times.

This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error