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| Meta Title | Inflation ticked up in August, but still within Banxico's expectations |
| Meta Description | Consumer prices rose 3.57% through August, remaining within the central bank's target range for the second month in a row. |
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| Boilerpipe Text | Consumer prices rose 3.57% through August, remaining within the central bank’s target range for the second month in a row, according to
data released by Mexico’s national statistics agency
INEGI.
After
easing in June
and
July
, the consumer price index (INPC) accelerated by 0.06% from July to August, though still roughly in line with market expectations.Â
Small eateries, such as loncherĂas, fondas, torterĂas and taquerĂas, felt a small amount of inflationary pressure during August. (Cuartoscuro)
In August 2024 — the final month of the López Obrador administration — monthly inflation was a mere 0.01% while annualized inflation sat at 4.99%.
The increase this August was driven by rising prices in several key consumer categories, including serrano chilies (+34.94%), green tomatoes (+16.71%), onions (6.33%) and beef (+0.67%). Also contributing were higher costs for housing and utilities (0.27%) and price hikes in services such as universities (+1.34%) and small restaurants — eateries known locally as loncherĂas, fondas and taquerĂas (+0.63%).
In contrast, prices for avocados (–7.36%), chicken (–4.62%), bananas (–5.23), tomatoes (–11.46%), air freight (–9.76%) and movie theaters (–11%) declined considerably.
Data showed that core inflation — which excludes volatile items like food and energy prices to assess underlying, long-term inflation trends — climbed 0.22% in August (just as it did in August a year ago), remaining stable at 4.23% on the year. Analysts had forecast an annual core inflation rate of 4.21%.
The inflation rebound in August not only indicates persistent underlying price pressures, as
noted by Moody’s analyst Alfredo Coutiño
, but also highlights the delicate balance between controlling inflation and stimulating the economy as Mexico continues its post-pandemic recovery.
Even so, the latest data suggests that inflation remains within the Bank of Mexico’s target range of 3% (plus or minus 1%). This suggests the central bank may proceed with a 25-basis-point rate cut at its next meeting on Sept. 25, continuing its monetary easing strategy by lowering the benchmark rate to 7.5%.
In the 2026 budget proposal
submitted by the Finance Ministry late Monday
,
inflation for year-end 2026 was forecast at 3%. This would meet the target set by the Bank of Mexico, which projects inflation converging to the target in the third quarter of next year.
With reports from
El Economista
,
La Jornada
and
El Financiero |
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# Annual inflation rose in August, but remains within central bank’s comfort zone
[](https://mexiconewsdaily.com/author/tbuckley/ "MND Staff")
By [MND Staff](https://mexiconewsdaily.com/author/tbuckley/)
September 9, 2025
[0](https://mexiconewsdaily.com/news/inflation-ticked-up-august-banxico-expectations/#respond)
[](https://mexiconewsdaily.com/wp-content/uploads/2025/09/1043494_Agroindustria-tomates-Zacatecas_impreso.jpg)
The price of red tomatoes fell 11.46% in August, bucking a trend that led to a very slight rise in overall Mexican inflation from July to August. (Adolfo Vladimir/Cuartoscuro)
Consumer prices rose 3.57% through August, remaining within the central bank’s target range for the second month in a row, according to [data released by Mexico’s national statistics agency](https://www.inegi.org.mx/contenidos/saladeprensa/boletines/2025/inpc/inpc_2q2025_09.pdf) INEGI.
After [easing in June](https://mexiconewsdaily.com/business/inflation-eases-in-june/) and [July](https://www.reuters.com/world/americas/mexicos-inflation-slows-july-central-bank-set-deliver-fresh-rate-cut-2025-08-07/), the consumer price index (INPC) accelerated by 0.06% from July to August, though still roughly in line with market expectations.

Small eateries, such as loncherĂas, fondas, torterĂas and taquerĂas, felt a small amount of inflationary pressure during August. (Cuartoscuro)
In August 2024 — the final month of the López Obrador administration — monthly inflation was a mere 0.01% while annualized inflation sat at 4.99%.
The increase this August was driven by rising prices in several key consumer categories, including serrano chilies (+34.94%), green tomatoes (+16.71%), onions (6.33%) and beef (+0.67%). Also contributing were higher costs for housing and utilities (0.27%) and price hikes in services such as universities (+1.34%) and small restaurants — eateries known locally as loncherĂas, fondas and taquerĂas (+0.63%).
In contrast, prices for avocados (–7.36%), chicken (–4.62%), bananas (–5.23), tomatoes (–11.46%), air freight (–9.76%) and movie theaters (–11%) declined considerably.
Data showed that core inflation — which excludes volatile items like food and energy prices to assess underlying, long-term inflation trends — climbed 0.22% in August (just as it did in August a year ago), remaining stable at 4.23% on the year. Analysts had forecast an annual core inflation rate of 4.21%.
The inflation rebound in August not only indicates persistent underlying price pressures, as [noted by Moody’s analyst Alfredo Coutiño](https://x.com/AlfredoCoutino/status/1965391231602885061), but also highlights the delicate balance between controlling inflation and stimulating the economy as Mexico continues its post-pandemic recovery.
[](https://mexiconewsdaily.com/register/?level_id=8)
Even so, the latest data suggests that inflation remains within the Bank of Mexico’s target range of 3% (plus or minus 1%). This suggests the central bank may proceed with a 25-basis-point rate cut at its next meeting on Sept. 25, continuing its monetary easing strategy by lowering the benchmark rate to 7.5%.
In the 2026 budget proposal [submitted by the Finance Ministry late Monday](https://mexiconewsdaily.com/news/finance-ministry-2026-budget-18-percent-increase-welfare-spending/), inflation for year-end 2026 was forecast at 3%. This would meet the target set by the Bank of Mexico, which projects inflation converging to the target in the third quarter of next year.
*With reports from* [*El Economista*](https://www.eleconomista.com.mx/economia/inflacion-mexico-acelero-3-57-agosto-20250909-776384.html)*,* [*La Jornada*](https://www.jornada.com.mx/noticia/2025/09/09/economia/sube-inflacion-a-357-en-agosto-impulsada-por-alza-en-carnes-y-verduras) *and* [*El Financiero*](https://www.elfinanciero.com.mx/economia/2025/09/09/inflacion-en-mexico-pisa-el-acelerador-se-ubica-en-357-en-agosto-mas-de-lo-esperado/)
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| Readable Markdown | Consumer prices rose 3.57% through August, remaining within the central bank’s target range for the second month in a row, according to [data released by Mexico’s national statistics agency](https://www.inegi.org.mx/contenidos/saladeprensa/boletines/2025/inpc/inpc_2q2025_09.pdf) INEGI.
After [easing in June](https://mexiconewsdaily.com/business/inflation-eases-in-june/) and [July](https://www.reuters.com/world/americas/mexicos-inflation-slows-july-central-bank-set-deliver-fresh-rate-cut-2025-08-07/), the consumer price index (INPC) accelerated by 0.06% from July to August, though still roughly in line with market expectations.

Small eateries, such as loncherĂas, fondas, torterĂas and taquerĂas, felt a small amount of inflationary pressure during August. (Cuartoscuro)
In August 2024 — the final month of the López Obrador administration — monthly inflation was a mere 0.01% while annualized inflation sat at 4.99%.
The increase this August was driven by rising prices in several key consumer categories, including serrano chilies (+34.94%), green tomatoes (+16.71%), onions (6.33%) and beef (+0.67%). Also contributing were higher costs for housing and utilities (0.27%) and price hikes in services such as universities (+1.34%) and small restaurants — eateries known locally as loncherĂas, fondas and taquerĂas (+0.63%).
In contrast, prices for avocados (–7.36%), chicken (–4.62%), bananas (–5.23), tomatoes (–11.46%), air freight (–9.76%) and movie theaters (–11%) declined considerably.
Data showed that core inflation — which excludes volatile items like food and energy prices to assess underlying, long-term inflation trends — climbed 0.22% in August (just as it did in August a year ago), remaining stable at 4.23% on the year. Analysts had forecast an annual core inflation rate of 4.21%.
The inflation rebound in August not only indicates persistent underlying price pressures, as [noted by Moody’s analyst Alfredo Coutiño](https://x.com/AlfredoCoutino/status/1965391231602885061), but also highlights the delicate balance between controlling inflation and stimulating the economy as Mexico continues its post-pandemic recovery.
[](https://mexiconewsdaily.com/register/?level_id=8)
Even so, the latest data suggests that inflation remains within the Bank of Mexico’s target range of 3% (plus or minus 1%). This suggests the central bank may proceed with a 25-basis-point rate cut at its next meeting on Sept. 25, continuing its monetary easing strategy by lowering the benchmark rate to 7.5%.
In the 2026 budget proposal [submitted by the Finance Ministry late Monday](https://mexiconewsdaily.com/news/finance-ministry-2026-budget-18-percent-increase-welfare-spending/), inflation for year-end 2026 was forecast at 3%. This would meet the target set by the Bank of Mexico, which projects inflation converging to the target in the third quarter of next year.
*With reports from* [*El Economista*](https://www.eleconomista.com.mx/economia/inflacion-mexico-acelero-3-57-agosto-20250909-776384.html)*,* [*La Jornada*](https://www.jornada.com.mx/noticia/2025/09/09/economia/sube-inflacion-a-357-en-agosto-impulsada-por-alza-en-carnes-y-verduras) *and* [*El Financiero*](https://www.elfinanciero.com.mx/economia/2025/09/09/inflacion-en-mexico-pisa-el-acelerador-se-ubica-en-357-en-agosto-mas-de-lo-esperado/) |
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