Inflation in Mexico resumed pressure during October 2026. The National Consumer Price Index (INPC) reported a monthly increase of 0.65%, bringing the annual rate to 3.75% , according to the National Institute of Statistics and Geography (Inegi) .
The result surpassed the monthly advance of 0.36% observed in October 2025, while annual inflation also placed above the 3.57% recorded in the same period last year.
The core inflation index , which excludes volatile goods and services or those whose prices are not determined by market conditions, rose 0.34% month-on-month . Within this index, goods prices increased by 0.22% and services prices by 0.44%.
On a monthly basis, the non-core price index —which includes goods and services whose prices are subject to fluctuations— rose 1.75 percent . Within this index, fruit and vegetable prices increased 2.35 percent, and energy and regulated tariffs rose 2.13 percent.
This is largely due to the conclusion of the subsidy for the summer season electricity tariff program in 18 cities across the country where the INPC has coverage.
The increase in inflation last October is mainly explained by a spike in the price of products such as green tomatoes with a rise of 35.58%, air transport with 26.36%, zucchini with 23.22%, electricity with 18.51%, tomatoes with 9.68%, LP domestic gas with 3.67% and eggs with an increase of 2.16% at a monthly rate.
In contrast, the products with the greatest decrease in their cost during the cycle were lemon with a drop of 16.53%, serrano chili with 8.98%, orangewith 8.90%, potato and other tubers with 6.29% and bananas with a monthly price decrease of 4.83%.
Among the states with the largest monthly increases in the National Consumer Price Index (INPC) were Tabasco, Yucatán, and Quintana Roo . Meanwhile, Sinaloa, San Luis Potosí, and Nayarit were among the states with variations below the national average.
October’s result represented an increase from 3.45% last September, meaning that overall inflation has now risen for three consecutive months .
Despite this, inflation remained within the Bank of Mexico’s (Banxico) target range of 3% +/- 1% for the sixth consecutive month.
The benchmark interest rate is the base level that Banxico uses to set banks’ lending and savings rates. By lowering it, banks can reduce interest rates on loans (mortgages, personal loans, credit cards) and decrease the returns on some savings instruments. This makes borrowing money cheaper and investing in low-risk instruments less attractive, which can stimulate consumption and investment .
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