Mexico’s headline inflation rate has declined for the eighth consecutive 15-day period, moderating further during the first half of July to reach its lowest level since 2020.
The latest reading from the national statistics institute INEGI places the annual rate just above the Bank of Mexico’s 3% target, signaling that price pressures are easing faster than many market participants had anticipated.
This sustained disinflationary trend strengthens the argument for the central bank to begin cutting interest rates sooner rather than later.
With the rate hovering near the official target, policymakers have increasing flexibility to ease monetary policy without risking a resurgence of inflation.
The data suggests that the central bank’s previous tightening cycle has successfully anchored expectations, allowing for a smoother transition to a more accommodative stance.
The latest figures build on a clear downward trajectory established earlier in the year.