Mexico’s annual inflation rate accelerated for the third consecutive month to 3.75% in October 2026, its highest level since May, up from 3.45% in September. The figure exceeded market expectations of 3.65% and moved further above Banxico’s 3% target.
Price increases were broad-based. Food and non-alcoholic beverages rose 3.55% (vs 2.55% in September), driven in particular by fruit and vegetables, which surged 13.19% (vs 8.78%). Housing and utilities also contributed, with prices up 3.60% (vs 3.33%).
Additional upward pressure came from alcoholic beverages and tobacco (7.00% vs 7.31%), insurance and financial services (7.55% vs 5.88%), restaurants and hotels (6.20% vs 6.19%), and education (5.85% vs 5.85%).
Core inflation edged up to 3.80% in October from 3.75% in September, broadly in line with forecasts of 3.78%. On a monthly basis, consumer prices increased 0.65%, up from 0.42% in September and above market expectations of a 0.55% rise.
