By Anthony Harrup
MEXICO CITY--Inflation in Mexico rose more than expected in the first half of March, led by increases in fresh fruit and vegetable prices, while core inflation held steady.
The consumer price index rose 0.62% in the first two weeks of the month, pushing the 12-month inflation rate up to 4.63% from 4.13% in the second half of February, national statistics institute Inegi said Tuesday.
Core CPI, which excludes energy and fresh food prices, rose 0.22% in the two-week period for an annual rate of 4.46%, compared with 4.48% in the second half of February.
Fruit and vegetable prices rose 8.34% in the first half of March, including a 32% jump in tomato prices. Energy prices rose 0.61% from the end of February.
The Finance Ministry this week lowered taxes on gasoline in response to the rise in crude oil prices brought on by the war in the Middle East. Tax relief for diesel was reinstated the previous week and increased this week.
The resumption of tax benefits came after the government renewed an agreement with fuel retailers to keep the price of regular gasoline under 24 pesos a liter, which is equivalent to about $5.10 a gallon.
Analysts are divided in their views on whether the Bank of Mexico will resume cutting interest rates this week after a pause in February to assess the inflationary impact of higher excise taxes on soft drinks and tobacco, and of higher tariffs on countries with which Mexico doesn't have a trade agreement.
Of the 37 analysts polled last week by Citi Research, 14 expect a quarter percentage-point cut Thursday in the central bank's benchmark interest rate to 6.75%. Seventeen expect the central bank's next interest rate reduction to come in May, and six see the bank waiting until June before making a next cut.
Write to Anthony Harrup at anthony.harrup@wsj.com
(END) Dow Jones Newswires
March 24, 2026 08:35 ET (12:35 GMT)
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