Mexico inflation slows to 3.1% in early July, reinforcing central bank's hold

Consumer prices rose less than expected in the first half of July, providing fresh evidence that price pressures are easing and supporting the central bank's decision to keep borrowing costs steady.

By Handelsavisen Newsroom · Automated 2026-07-23 12:53 UTC · 1 min read

Mexico’s annual inflation rate decelerated to 3.1% in the first two weeks of July, according to official data published Thursday.

The reading marks a further decline from the 3.55% recorded in early June, which had already been the lowest level of the year.

50%. Policymakers signaled that borrowing costs are likely to remain at current levels for an extended period, reflecting confidence that inflation is moving sustainably toward the target range.

The continued moderation in price growth suggests that the central bank’s monetary tightening cycle has effectively anchored expectations, reducing the urgency for further policy adjustments.

The latest figures arrive just one day after Mexico’s central bank held its benchmark interest rate unchanged at 6.50%.

Policymakers signaled that borrowing costs are likely to remain at current levels for an extended period, reflecting confidence that inflation is moving sustainably toward the target range.

The July data reinforces that stance, showing that disinflationary momentum persists despite global headwinds.