Mexico’s annual headline inflation rate fell to 3.37% in June, marking the lowest level in more than five years and sitting just above the central bank’s 3% target.
The reading, released by national statistics agency INEGI, represents a continued deceleration from the 3.94% recorded in May, signaling that price pressures are easing faster than previously anticipated.
The decline was primarily driven by lower prices for fresh vegetables, a volatile component that has historically contributed to short-term inflation spikes.
This second consecutive month of deceleration provides Banxico with fresh data ahead of its upcoming policy meeting, reinforcing the narrative that the central bank’s tightening cycle may be nearing its end.
With inflation hovering near the target band, market participants are increasingly pricing in a shift toward monetary easing.
The persistent drop in headline figures suggests that underlying price stability is returning, reducing the urgency for further rate hikes.