Mexico's Inflation Accelerates to 3.26% in Early August as Onion and Egg Prices Jump

Mexico's annual headline inflation rose to 3.26% in the first half of August 2026, INEGI, the country's national statistics agency, reported on August 24. The National Consumer Price Index (INPC) rose 0.10% from the prior fortnight to a level of 145.393 points, and the reading came in below the 3.49% annual rate recorded in the same fortnight of 2025.

Core inflation, which strips out volatile items, held nearly steady at 3.93% annually, while non-core inflation swung to 0.96% annually as agricultural prices reversed several months of declines to rise 0.39% on the fortnight. Onion, chile, and egg prices were among the sharpest movers, while LP gas, potatoes, and tomatoes fell.

Headline Inflation Ticks Up to 3.26%

The National Consumer Price Index (INPC) rose 0.10% on a fortnight-over-fortnight basis in the first half of August 2026, reaching a level of 145.393 points, according to Boletín de Indicador 498/26, published by Mexico's national statistics agency, INEGI, on August 24. That pushed annual headline inflation to 3.26%, below the 3.49% recorded in the same fortnight of 2025. Measured against the second half of July 2026, the INPC was also up 0.10%; against the first half of July 2026, the increase was 0.21%.

Core Holds Near 4%, Non-Core Swings Positive

Core inflation — which excludes goods and services with high price volatility or whose prices don't respond to market conditions — rose 0.08% on the fortnight and stood at 3.93% annually. Within core, merchandise prices rose 0.07% and services 0.09% on the fortnight. Non-core inflation, which had been negative or flat for much of the summer, swung to a 0.18% fortnightly increase and 0.96% annually, driven mainly by a 0.39% fortnightly rise in agricultural product prices — a reversal after agricultural prices had fallen for several consecutive periods. Government-regulated energy tariffs rose a more modest 0.02% on the fortnight.

Onion, Chile, and Egg Prices Lead the Increases

Among individual products, INEGI identified egg (+7.92%), onion (+19.03%), taxi fares (+1.73%), owner-occupied housing costs (+0.10%), university tuition (+0.88%), other fruits (+3.53%), serrano chile (+8.92%), and tequila (+2.80%) as the largest contributors to the fortnightly increase. On the other side, domestic LP gas (-2.05%), potatoes and other tubers (-5.97%), tomatoes (-4.86%), chicken (-1.21%), automobiles (-0.56%), and air travel (-5.02%) posted the sharpest declines.

Still Within Banxico's Target, but the Trend Is Up

The 3.26% reading remains within the Bank of Mexico's (Banxico) inflation target of 3%, plus or minus one percentage point, and it reverses a dip to the 3.12% rate INEGI confirmed for full-month July 2026 — a reading EconoLens covered on August 9 alongside Banxico's August 6 decision to hold its benchmark rate at 6.50% for a second straight meeting while pushing back its inflation-convergence timeline. Core inflation, at 3.93%, is little changed from the 3.95% recorded for full-month July and remains well above Banxico's 3% target — a gap the central bank has cited in explaining its cautious approach to further rate cuts even as headline inflation stays inside the target band.

Reader Q&A

What's the difference between INEGI's fortnightly and monthly inflation reports?

INEGI publishes the INPC twice a month — once for each half-month period (quincena) — in addition to a single full-month figure. The fortnightly reports, like this one covering August 1-15, 2026, let analysts track price momentum in near-real time, while the monthly report remains the more widely cited headline figure.

What's driving the swing in non-core inflation?

Non-core inflation, which covers agricultural products and government-regulated prices such as energy tariffs, had been negative or near-zero for much of the summer. It turned positive in the first half of August largely because agricultural prices rose 0.39% on the fortnight, reversing several periods of decline, with onion and egg prices posting the sharpest increases.

Does this data suggest Banco de México will change its rate path?

This release contains no new Banxico commentary. At its August 6, 2026 meeting, Banxico held its benchmark rate at 6.50% and pushed back its timeline for inflation to converge with target, a stance based partly on core inflation staying close to 4% even as headline inflation remains within the target band.

How does Mexico's 3.26% compare with its inflation target?

Banxico targets 3% annual inflation, with a tolerance band of plus or minus one percentage point (2%-4%). At 3.26%, headline inflation sits inside that band, though core inflation at 3.93% is close to the top of it.