Mexico City — Mexico’s annual headline inflation rate fell to 3.37% in June 2026, its lowest level since December 2020, when it stood at 3.15%, according to data released Wednesday by the National Institute of Statistics and Geography (INEGI).
The consumer price index dropped 0.27% month-on-month in June, the second consecutive monthly decline. The annual rate has slowed for three straight months, bringing inflation within the Bank of Mexico’s target range of 3% plus or minus one percentage point for the second consecutive reading.
The deceleration was driven by a sharp drop in agricultural prices, particularly fruits and vegetables. Tomatoes, serrano and poblano chiles, lemons, cucumbers, and grapes all saw price declines. Eggs, other fruits, and automobiles also contributed to the downward trend.
Tomatoes, which had been a major driver of inflation in previous months, fell 38.98% month-on-month and posted an annual variation of 19.41%.
Prices for owner-occupied housing, potatoes and other tubers, and avocados rose during the period.
Core inflation, which excludes volatile items and accounts for 76% of the overall index, rose 0.24% from May and stood at 4.03% year-on-year, marking five consecutive annual declines.
Non-core inflation, which includes volatile agricultural products, energy, and government-authorized tariffs, slowed sharply, falling 2.04% month-on-month to an annual rate of 1.11%.
Producer Prices
The National Producer Price Index (INPP), which measures the prices of a fixed basket of goods and services including oil, fell 0.87% month-on-month in June and rose 2.10% year-on-year. In June 2025, the index fell 0.07% month-on-month and rose 4.89% annually.
The index for intermediate goods and services, including oil, fell 1.38% month-on-month and rose 0.70% year-on-year. In June 2025, it fell 0.07% and rose 5.10%, respectively.
The index for final goods and services, including oil, fell 0.66% month-on-month and rose 2.67% year-on-year. In June 2025, it fell 0.07% month-on-month and rose 4.82% annually.
