Mexico’s Economy Grew 1.4% in Q2, Inflation Stays in Target
Mexico's economy grew 1.4% in the second quarter of 2026. Inflation remains within the central bank's target, but services costs are still a concern. The post Mexico’s Economy Grew 1.4% in Q2, Inflation Stays in Target appeared first on The Rio Times .
Mexico's economy expanded by 1.4% in the second quarter of 2026, according to figures released by Mexico's national statistics agency, INEGI. This growth figure, seasonally adjusted, represents a 1.4% increase from the first quarter of 2026. Despite this positive quarterly growth, services inflation remains a challenge, with the services sector contracting by 0.1% in June 2026.
The economy's annual growth rate stands at 2.1%, slightly higher than the previous year. The current inflation rate, standing at 3.26%, sits comfortably within the central bank's target range of 2% to 4%. However, core inflation, which excludes volatile food and energy prices, is higher at 3.93%. This discrepancy suggests that underlying economic pressures remain.
For investors, this means the central bank may maintain higher borrowing costs for an extended period, impacting bond yields and the peso exchange rate.
Written by urgent.news from The Rio Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
