Mexico's inflation rate drops to 3.12% in July

Mexico's inflation rate continued its descent in July, reaching 3.12%, a notable decrease from the 3.37% recorded in June. This trend, reported by the National Institute of Statistics and Geography (Inegi), indicates a cooling price environment in the country.

The underlying inflation rate, which strips out highly volatile items, registered at 3.95%. Meanwhile, the non-core inflation rate, reflecting prices of goods with more stable price tags, stood at 0.29%. These figures provide a more nuanced view of price pressures within the Mexican economy.

Several key goods experienced price reductions during July. Notably, tomatoes, domestic liquefied petroleum gas (LP gas), and automobiles saw their prices fall. These decreases likely contributed to the overall moderation in the inflation figures.

Conversely, other items contributed to upward price pressure. The cost of onions increased, as did the price of owner-occupied housing. Additionally, prices rose for services at eateries such as loncherías, fondas, torterías, and taquerías. These increases in specific sectors offset some of the broader deflationary trends.