Mexico inflation trends in August 2026

Mexico experienced an upward trend in inflation during August 2026, breaking a four-month period of deceleration. National annual inflation rose to 3.26%, driven largely by increases in food and services.

In Saltillo, Coahuila, local inflation during the first half of August reached 0.34 percent, which was 3.4 times higher than the national average of 0.10 percent. Local price pressures were attributed to the start of the school year, affecting tuition and educational services, alongside rising urban transport costs. Specific food items such as onions, serrano chili, and eggs also saw significant price hikes.

By the end of August, the national Consumer Price Index showed a monthly increase of 0.20 percent compared to July. While food costs for items like onions (32.70%) and serrano chili (19.61%) continued to surge, the core inflation rate—excluding volatile energy and fresh food items—showed a slight deceleration, falling to 3.88% from 3.95% in July. The overall rate remains within the target range established by the Bank of Mexico.

Data from the National Institute of Statistics and Geography (INEGI) indicates that while food items like lemon (11.17%) and eggs (8.91%) saw increases, prices for chicken, avocado, and potatoes decreased. The Bank of Mexico (Banxico) maintains a cautious stance on interest rates, which are currently held at 6.5%.