Overview
- INEGI reported the INPC rose 0.17% in the first half of December, taking annual headline inflation to 3.72% and keeping it within Banxico’s 3% ±1 pp target band.
- The core index increased 0.31% quincenal and 4.34% year over year, with services up 0.47% and goods 0.13%, underscoring sticky underlying pressures.
- The non-core component fell 0.30% in the period and ran at 1.71% annually, as declines in fruits and vegetables offset sharp jumps in airfares (+38.25%), package tourism (+9.02%) and green tomato (+10.69%).
- Following its Dec. 18 cut to 7.00%, Banxico is expected by analysts to hold rates next meeting as upcoming tax changes, new tariffs and minimum‑wage adjustments in January could add price pressure.
- President Claudia Sheinbaum highlighted the inflation downtick, while a 4.3% annualized U.S. GDP reading for Q3 and a peso near 17.90 per dollar provide broader context for the outlook.