La Derecha Diario Mexico Presented an Inflation Increase of 3.74%
Amid the threat of tariffs, the first inflationary increase of the year was recorded.
In the first half of February 2025, inflation in Mexico recorded an annual increase of 3.74%, according to data from the National Institute of Statistics and Geography (INEGI).
This uptick ends a trend of six consecutive fortnights of decline, although the rate remains within the target of the Bank of Mexico.
Breakdown of inflation
Core inflation, which excludes highly volatile products, also showed a slight increase, standing at 3.63% annually. This component reflects the more persistent inflationary pressures in the economy.
This increase translates into a gradual rise in prices of regular consumer goods and services, affecting consumers' purchasing power and budget.
External and internal factors
The Mexican economy faces additional challenges due to international trade policies.
The recent imposition of a 25% tariff by the United States on Mexican steel and aluminum exports could negatively impact key sectors such as automotive and manufacturing.
This measure, which will take effect on March 12, aims to curb the alleged triangulation of exports from China through Mexico and Canada to the United States.
The Mexican Institute for Competitiveness (IMCO) estimates that this tariff could represent an economic blow exceeding 29 billion dollars.
Economic outlook
In this scenario, the Bank of Mexico has adjusted its economic growth forecast for 2025 downward, reducing it from 1.2% to 0.6%.
This decision is due to growing global economic uncertainty and changes in the United States administration.
Despite the recent inflationary uptick, the Bank of Mexico is expected to continue with an accommodative monetary policy to stimulate economic growth.
Currently, the benchmark interest rate stands at 9.5%, after a half-percentage-point reduction this month.
Governor Victoria Rodríguez has indicated that the fight against inflation has entered a new phase, which could allow for future interest rate cuts.
Focus on core inflation
Banxico pays special attention to core inflation, which excludes highly volatile products and reflects medium- and long-term inflationary trends.
Conclusion
The Mexican economy is at a crossroads, facing moderate inflationary pressures and significant external challenges.
Monetary policy decisions and international trade relations will be crucial for the country's economic direction in the coming months.
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