FX.co ★ Mexico Inflation Rate Slows as Expected

In October 2025, annual inflation in Mexico slowed to 3.57%, down from 3.76% in September, marking its first decline in three months and aligning closely with analysts' expectations of 3.56%. This rate of inflation remained comfortably within the central bank's target range of 2% to 4%. The deceleration in price growth was mainly observed in the sectors of food and non-alcoholic beverages, which slowed to 2.64% from 3.94% in September, as well as in restaurants and hotels, dropping to 7.48% from 7.61%, and miscellaneous goods and services, easing to 5.69% from 6.06%. Meanwhile, the core inflation rate, which excludes volatile items, remained steady from September at 4.28%—the highest since April 2024—and was almost exactly as predicted, with forecasts at 4.27%. On a month-over-month basis, the Consumer Price Index (CPI) increased by 0.36% in October, following a 0.23% rise in the previous month, meeting market expectations precisely.