Annual inflation in Mexico eased to 3.57% in October 2025 from 3.76% in September, marking the first deceleration in three months and coming broadly in line with analysts' estimates of 3.56%. Inflation stayed comfortably within the central bank’s 2%–4% target. Price growth moderated primarily for food & non-alcoholic beverages (2.64% vs 3.94% in September), on account of fresh food; restaurants & hotels (7.48% vs 7.61%) and miscellaneous goods & services (5.69% vs 6.06%). Meanwhile, other categories saw faster increases in prices, including health (5.05% vs 4.83%); alcoholic beverages & tobacco (4.62% vs 439%) and housing & utilities (3.68% vs 3.45%), due to higher energy costs (1.07% vs 0.36%). Meanwhile, the core inflation rate, which excludes energy and fresh food prices, stood at 4.28%, the highest since April 2024, largely matching forecasts of 4.27%. On a monthly basis, the CPI rose by 0.36% in October, after a 0.23% increase in the prior month, matching market forecasts.