Mexico’s annual inflation rate eased to 3.94% in the second half of May 2026, down from 4.45% in the same period a month earlier, reaching its lowest level in four months. The reading came in slightly below market expectations of 4.02%, bringing inflation back within the Bank of Mexico’s tolerance band of ±1 percentage point around the 3% target.
Energy inflation was subdued at 3.27%, despite sharp increases in global prices for oil, natural gas, and coal following the outbreak of war in the Middle East. This resilience largely reflected substantial fuel tax credits and price caps introduced by the Mexican government. Core goods inflation was also contained at 3.78%, with non-food core goods (2.84%) rising more slowly than core food goods (5.13%). By contrast, services inflation remained higher at 4.57%.
On a monthly basis, the consumer price index (CPI) fell by 0.2%, the first decline in two years, as expanded energy subsidies helped reverse the initial price pressures stemming from the conflict and led to a moderation in energy prices.
