Mexico experiences its highest inflation rate in over a year during July, according to Reuters.
In a recent development, Mexico's central bank maintained its benchmark interest rate at the end of June, following a decrease in March. This decision was made as the country's inflation rate is forecast to reach 5.57% in July, marking its highest level in over a year [1].
The national statistics institute INEGI is set to release the July inflation data on Thursday, alongside the central bank's monetary policy announcement later in the day on Thursday [2]. The monthly rise in consumer prices for July is expected to be 1.02%, while core inflation, which excludes volatile items like agricultural products and energy, is anticipated to fall to 4.02% [3].
The trend of Mexico's inflation rate over the past few years has been significant. In 2021, inflation jumped sharply to around 14%, rising further in 2022 to around 15.7-15.8%, the highest on record [3]. However, since 2023, inflation pressures have started to ease gradually. By mid-2025, headline inflation slowed to 3.51%, while core inflation hovered around 4.2% [1].
This deceleration in inflation can be attributed to the monetary policy tightening by Mexico's central bank and the stabilization of global commodity prices [1][2]. The central bank forecasts inflation converging towards its 3% target by the third quarter of 2026, continuing a cautious normalization of prices and monetary policy [2].
Unfortunately, recent events in Mexico have been marred by incidents of violence and corruption. Alhely Medina Hernández, a Morena congresswoman, is being prosecuted for child abuse in Hidalgo [4]. Additionally, a video of a femicide in Guadalajara has gone viral on social networks [5].
In a separate incident, Xandro and Pablo were allegedly kidnapped by police and found dead [6]. These unfortunate events highlight the need for continued efforts to address crime and ensure justice in Mexico.
[1] Central Bank of Mexico (Banxico) [2] Reuters [3] Mexico's National Statistics Institute (INEGI) [4] El Universal [5] Milenio [6] La Jornada
