Mexico’s Inflation Hits 3.75% in October After Banxico Cuts Rates by 25 Basis Points
Key Facts
Annual inflation in Mexico reached 3.75% in October 2026, while core inflation was 3.80% and non-core inflation 3.59%, according to data from the National Institute of Statistics and Geography. The figures followed a 25-basis-point cut in the Bank of Mexico’s target interest rate on November 5. The central bank had kept the rate at 6.50% in its previous decision on September 24. The data put domestic inflation and the rate decision at the forefront of the backdrop to peso trading during the week. Claims about the currency’s movement in the November 11 session or that the bank signaled a longer pause could not be verified from a reliable open source.
On a monthly basis, Mexico’s consumer price index rose 0.65% in October, according to Bank of Mexico data. The core index increased 0.34%, while the non-core index rose 1.75%. The divergence shows that the monthly increase in the non-core component was larger than the increase in the core component. On an annual basis, core inflation was 3.80%, compared with 3.59% for non-core inflation. These readings provide details on inflation components in the same month that the overall rate reached 3.75%.
In the United States, the Consumer Price Index for All Urban Consumers rose 0.4% in October on a seasonally adjusted basis, after a 0.6% increase in September, according to the Bureau of Labor Statistics. The shelter index rose 0.3% during the month, accounting for more than 30% of the monthly increase in the overall index. The food index rose 0.5% and the energy index increased 0.7%. The core index, which excludes food and energy, rose 0.3% in October, the same pace recorded in September and August. The figures put October’s reading in the context of a smaller monthly increase in the overall index than in the previous month, while major components continued to rise.
The U.S. Consumer Price Index, not seasonally adjusted, stood at 337.511 in October, on a 1982–84=100 basis, up 0.2% during the month before seasonal adjustment, the bureau said. This level is for October, not a reading of an index published on November 10 for November. The bureau also said that its inability to collect October 2025 data because of a lapse in appropriations prevented publication of the annual change for October 2026 for some series lacking comparison data. This limitation reduces the availability of 12-month change rates for those specific indexes. The U.S. Consumer Price Index for November is scheduled for release on December 10, 2026, at 8:30 a.m. Eastern time.
Against the foreign-exchange market backdrop, the peso rose 0.6% on November 6, recouping some of its losses after the rate cut the previous day, according to a Reuters report carried by Fidelity. The Bank of Mexico described the decision as a “one-off adjustment,” the report said. The report quoted analysts as saying the currency’s improvement partly reflected growing optimism that potential changes to the United States-Mexico-Canada trade agreement would face greater scrutiny after the U.S. midterm elections. In the same session, the dollar rose 0.8% against a basket of currencies after a stronger-than-expected U.S. jobs report bolstered expectations that the Federal Reserve would raise rates the following month. The Bank of Mexico’s official FIX exchange rate was 16.9707 pesos per dollar on November 9; that is a reading for that date and does not by itself establish the peso’s direction in the November 11 session.