Mexico's annual inflation rate slowed to 4.32% in June 2025, ending a four-month streak of increases, according to data from the National Institute of Statistics and Geography (INEGI). This deceleration was less than expected and remains above the Bank of Mexico's target range. The slowdown was driven by declines in prices of fruits, vegetables, energy, and government-authorized tariffs, while prices for meat and housing continued to rise. Despite the easing in headline inflation, the core inflation index, which excludes volatile items, continued to increase, complicating the outlook for monetary policy and domestic consumption. Producer inflation also decelerated for the fourth consecutive month, falling to 4.89% in June from 6.38% in May. These figures reflect mixed inflation dynamics in Mexico's economy as policymakers monitor price pressures.