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Mexico's Inflation Drops to 3.69%, Lowest in Five Years

1/8/2026

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Summary

Story summary

Mexico's inflation fell to 3.69% in December, lowest year-end rate in five years, per Instituto Nacional de Estadística y Geografía (INEGI).
Month-over-month inflation rose 0.28%, the lowest since 2012.
Banco de México lowered its policy rate to 7% from 10% in 2025, while targeting a 3% inflation rate.
Forecasts project inflation at about 4% by end of 2026, with the peso near 19 per U.S. dollar and growth at 1.3%.

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Story summary

Mexico's inflation fell to 3.69% in December, lowest year-end rate in five years, per Instituto Nacional de Estadística y Geografía (INEGI).
Month-over-month inflation rose 0.28%, the lowest since 2012.
Banco de México lowered its policy rate to 7% from 10% in 2025, while targeting a 3% inflation rate.
Forecasts project inflation at about 4% by end of 2026, with the peso near 19 per U.S. dollar and growth at 1.3%.