Inflation in Mexico showed a notable deceleration in mid-2025 after a period of continuous increase. According to data from the National Institute of Statistics and Geography (Inegi), the annual inflation rate slowed to 4.32% in June 2025, ending a four-month upward trend. Despite this slowdown, inflation remained above the target set by Banco de México. The core inflation index, which excludes volatile items, continued to rise during this period. In the first half of July 2025, inflation further moderated to 3.55% year-on-year, marking three consecutive biweekly declines and bringing inflation back within Banco de México's target range. This reduction was more pronounced than analysts had anticipated and was highlighted by Mexico City’s President Claudia Sheinbaum, who noted the decline followed a previous increase driven by rising meat prices. The easing inflation trend supports the central bank's cautious stance on monetary policy, following a recent interest rate cut and leaving open the possibility of further easing measures.