Inflation falls in July; it marks its second month of decline.

This Thursday, the National Institute of Statistics and Geography (INEGI) revealed that Mexico's inflation rate fell in July to 3.51%, marking its second consecutive month of decline.

The decline, below market expectations , is less than the 4.32% seen in all of June, and also less than the 4.21% it closed 2024 with.

The National Institute of Statistics and Geography ( INEGI) reported that the consumer price index ( CPI ) grew by 0.27% in the month.

The statistics institute noted that in the same month of 2024, monthly inflation was 1.05% and annual inflation was 5.57%.

The core price index, considered a better measure of overall price increases because it excludes highly volatile items, rose 0.31% monthly and 4.23% annually, INEGI detailed in its report.

While the non-core item increased by 0.13% monthly and 1.14% year-on-year.

Read: Peso opens down; this is how it trades against the dollar on August 7.

Within the underlying subgroup, commodities increased by 0.22% on the month and 4.02% annually.

Meanwhile, services grew 0.39% monthly and 4.44% annually.

In non-core prices, agricultural prices increased by 0.13% compared to the previous month and by 0.17% compared to the same month last year.

And energy prices and government-authorized rates rose 0.13% in the month and 1.97% in the year.

The price index for the basic consumer basket , comprising 176 products and services, grew by 0.23% monthly and 3.60% annually.

The sectors with the greatest year-on-year increases were restaurants and hotels (7.79%), education (5.79%), and personal care items, social protection, and miscellaneous goods (5.41%).

While the generic products that increased the most in the month were lettuce and cabbage (17.44%), nopales (13.04%), onions (7.39%), air transport (8.9%), eggs (5.91%) and potatoes and other tubers (4.56%).

Consumer prices closed 2024 with an increase of 4.21%, below market expectations and below the 4.66% in 2023, the 7.82% in 2022, and the 7.36% in 2021, both years with the highest levels in the last two decades.

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