Mexico Inflation Rises to 3.80% in March

In March 2025, Mexico's annual inflation increased to 3.80%, up from 3.77% in February, but remained within the Bank of Mexico's target range. The rise in inflation was attributed to higher prices for food, alcohol, and tobacco, despite lower energy costs helping to moderate overall price increases. The Bank of Mexico has cut its benchmark interest rate by 50 basis points to 9%, with expectations of further reductions as the economy faces challenges from U.S. tariffs and trade policies. Analysts predict a potential additional cut to 8.5% in May if economic conditions allow. The core inflation index, which excludes volatile items, remained steady at 3.64%. This situation underscores the ongoing economic uncertainties linked to global trade dynamics, particularly those stemming from U.S. policies.