Mexico Inflation Falls to 3.37% as Banxico Holds Rates
Mexico Week Key Facts —Inflation. Annual CPI fell to 3.37% in June 2026, the lowest reading since December 2020. —Remittances. Inflows rose 4.2% year-on-year in June 2026, rebounding after a 4.6% drop in 2025. —Rate Decision. Banxico held its policy rate at 6.50% on August 6 and pushed its 3% inflation target to Q4 2027. […] The post Mexico Inflation Falls to 3.37% as Banxico Holds Rates appeared…
Mexico's annual consumer price inflation fell to 3.37% in June 2026, marking the lowest level since December 2020. However, the central bank's cautious stance remains as core inflation, which excludes volatile food and energy prices, is still at 4.03%. Banco de México held its benchmark interest rate at 6.50% on August 6, 2026, indicating that the economy is not converging to the 3% inflation target until the fourth quarter of 2027.
This delay is due to persistent core inflation pressures. Meanwhile, remittance inflows rose 4.2% year-on-year in June 2026, recovering from a 4.6% drop in 2025. Despite this positive trend, real terms household resources fell by 8.3% in June 2026 compared to the previous year, due to exchange rate fluctuations and inflation. This situation supports carry-trade investors but may dampen local consumer spending power for those receiving remittances.
Written by urgent.news from The Rio Times's reporting — not their text. Machine-written — it may contain errors, so check the original before relying on it.
