Mexico's inflation rises to 3.75% in October on power, tomatoes
It topped September's 3.45%. The end of the summer electricity subsidy in 18 cities did most of the damage.
Consumer prices rose 0.65% in October 2026, and annual inflation reached 3.75%, up from 3.45% in September. The reading comes from the national consumer price index, or INPC, which the statistics agency INEGI uses to track what a typical household basket of goods and services costs from month to month.
The biggest push came from the end of a summer electricity-rate subsidy in 18 of the cities the index covers. Electricity prices jumped 18.51% in the month.
Airfares climbed 26.36% and tomatoes 9.68%. Domestic LP gas, the cooking and water-heating fuel, rose 3.67%. Lemons fell 16.53%, potatoes 6.29%, and internet, phone and pay-TV bundles 2.48%.
Volatile prices outweighed the rest. The non-core index, which groups farm products, energy and government-set rates, rose 1.75% on the month and 3.59% on the year, against 1.18% in October 2025. Fruit and vegetables alone are up 13.19% over 12 months.
Core inflation, which leaves out goods and services with erratic prices or prices set outside the market, rose 0.34% on the month. It stood at 3.80% a year, up from 3.75% in September.
| Measure | October 2025 | October 2026 |
|---|---|---|
| Headline | 3.57 | 3.75 |
| Core | 4.28 | 3.80 |
| Non-core | 1.18 | 3.59 |
Tabasco saw the largest monthly increase among the states, at 2.39%. Yucatán followed at 1.59% and Quintana Roo at 1.36%. Prices rose 1.25% in Nuevo León and 1.21% in Coahuila.
Electricity and LP gas weigh directly on household budgets, and power bills in the cities where the subsidy ended already carry the change.
The report landed four days after Banxico, the central bank, cut its benchmark rate to 6.25% on a 3-2 vote. It also raised its inflation forecast for the fourth quarter of 2026 and said holding the rate for a prolonged time would help inflation converge to 3%. INEGI releases November's figure on Dec. 9.
