Mexico Inflation Jumps to 3.75 Percent as Airfares Surge 26 Percent

(MENAFN) Mexico’s annual inflation climbed to 3.75 percent in October, propelled mainly by soaring electricity rates, airfares and certain farm products, according to figures a national statistics institute published Monday.

The National Consumer Price Index gained 0.65 percent from September, the agency said in its monthly report. Both the monthly and annual readings exceeded those of October 2025, when prices rose 0.36 percent on the month and 3.57 percent on the year.

Stripping out highly volatile goods and services, core inflation advanced 0.34 percent month on month and 3.80 percent year on year, the institute said.

Even so, headline and core annual inflation both stayed inside the central bank’s target range of 3 percent, plus or minus a percentage point.

Airfares were among the biggest drivers, jumping 26.36 percent. Electricity rates rose 18.51 percent, while tomato prices climbed 9.68 percent.

A separate report from private lender Banamex found that monthly headline inflation posted its biggest October increase since 2021.

“We expect annual headline inflation to reach 3.9 percent and core inflation 3.7 percent by the end of 2026, while maintaining our 2027 forecasts for both measures at 3.9 percent,” Banamex said.

The bank flagged several upside risks. Among them are a stronger pass-through of minimum wage hikes to other wages and intensifying weather-related price pressures, particularly from El Nino, which could strengthen in the coming months.

Further risks include fruit and vegetable prices running above expectations as international fertilizer costs rise, along with a larger-than-anticipated pass-through of the recent currency depreciation to non-food goods.

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