Overview
- INEGI data released Monday showed headline inflation rose to 3.75% year‑on‑year and the consumer price index increased 0.65% month‑on‑month, marking a third straight monthly acceleration.
- Core inflation, which excludes volatile items, climbed to 3.80% annual and ended an eight‑month deceleration, signaling broader price pressures in goods and services.
- The main immediate drivers were an 18.51% monthly jump in electricity after seasonal subsidy programs ended in 18 cities, large monthly rises in select fruits and vegetables and steep air‑fare increases.
- Producer prices accelerated to 5.60% annual with big gains in oil, fuel and transport inputs, a pattern that can push further costs through to consumers.
- Policymakers face upside risks to the disinflation path as Banxico has cut its policy rate to 6.25% and projected inflation will reach 3% only by late 2027, while private surveys expect Argentina’s October inflation near 1.8–2.0% ahead of INDEC’s release next week.