Inflation in Mexico continues to slow, after maintaining an upward trend in the first months of 2025. The decline in this indicator last July was primarily due to a drop in the cost of agricultural products.

In the seventh month of the year, the National Consumer Price Index (NCPI)  stood at  3.51%  compared to its annual comparison. On a monthly basis, the NCPI reported a 0.27% change, the National Institute of Statistics and Geography (INEGI) reported this Thursday .

With the data released in July, inflation in Mexico recorded its second consecutive month of decline, reaching an annual rate of 4.32% in June 2025 .

During the reference period, the core price index  —which excludes more volatile goods and services—increased  0.31%  monthly. Within this index, merchandise prices rose 0.22% and services prices 0.39%.

The  non-core price index  —which includes goods and services whose prices are more volatile and subject to fluctuations such as weather conditions and other factors—increased  0.13% monthly; agricultural product prices, energy prices, and government-authorized tariffs increased 0.13%.

Products on the rise and fall

The products that saw the greatest increases during the period were lettuce and cabbage , with 17.44%; nopales , with 13.04%; onions , with 7.39%; eggs , with 5.91%; and air transportation , with 8.90%, the latter due to the holiday season.

Meanwhile, the products that showed the greatest price decreases were grapes , with 18.35%; lemons , with 6.47%; avocados , with 6.01%; chicken , with 3.61%; and sugar , with 2.06%.

Quintana Roo, Oaxaca, Zacatecas, Durango, and Nayarit were among the Mexican states with the largest increases in the National Population Index (NCPI). Meanwhile, Puebla, Veracruz, Hidalgo, Campeche, and Tamaulipas were the states with a variation below the national average, according to the National Institute of Statistics and Geography (INEGI).

According to an analysis by  Grupo Financiero Ve por Más (BX+) , year-on-year inflation fell below 4% for the first time in three months, helped by the reversal in agricultural products and, to a lesser extent, energy.

Despite the slowdown in inflation in July, the underlying inflation rate remained reluctant to decline. “Within the underlying inflation rate, the increase in services other than housing and education, specifically those related to tourism, which is typical during the summer holidays, stood out,” he noted.

In its report, the financial institution emphasized that this was the lowest monthly change for the same period since 2016. “This was largely due to the low change in the non-core index, both for agricultural and energy products.”

He estimated that year-on-year growth in the National Consumer Price Index could remain below 4% in a context of sluggish economic growth, although, “due to the prevalence of upside risks and high uncertainty about the inflation outlook, we do not rule out revising our projections for this year in the near future.”

Comment and follow us on X:  @GrupoT21

El cargo Inflation falls in July; it’s been two consecutive months of decline: INEGI apareció primero en T21.