Inflation in Mexico drops to 3.10% in the first half of July
WHAT HAPPENED
Annual inflation in Mexico dropped to 3.10% in the first half of July, down from 3.37% at the end of June. The more stable part rose 3.95%, while the more volatile prices only increased 0.21%.
WHY IT MATTERS
The drop mainly came from products like gasoline, gas, fruits, and vegetables, whose prices change a lot. The underlying trend hardly budged. Banxico looks at both data points to decide its rate, which influences loans, consumption, construction, and home purchases.
AND FOR YOUR PORTFOLIO
For your wallet, something that cost $100 a year ago now costs $103.10. If inflation continues to drop, there could be more room to reduce the cost of mortgages, cars, and credit cards. For a long-term portfolio, lower rates usually make credit easier and support businesses that depend on consumption.
💬 TELL IT LIKE THIS
“Inflation has dropped, but the more stable part of prices is still not easing much; that's why Banxico still needs to proceed with caution.”