Mexico's inflation dips to 4.45% but food and fuel costs still bite households

Mexico’s annual inflation eased slightly in April, dropping to 4.45%. Despite this overall slowdown, sharp price rises in key goods and services kept pressure on household budgets. Tomatoes and chili peppers saw some of the steepest increases, alongside higher energy costs.

The National Consumer Price Index (INPC) climbed by 0.20% in April compared to March. Among the biggest jumps were tomato prices, which surged 19.25% in a single month. Over the past year, tomato costs have soared by 121.1%, making them one of the most volatile items in the basket.

Chili peppers also became significantly more expensive, with annual price hikes exceeding 50%. President Claudia Sheinbaum pointed to reduced supply as the main driver behind the rising costs of both tomatoes and chili peppers. Energy prices added further strain, with premium gasoline and liquefied petroleum (LP) gas both rising above the average rate. LP gas for household use increased by 1.56% in April, while urban bus fares went up by 3.44%. The overall energy sector saw a 6.16% spike, reinforcing its role in pushing consumer prices higher.

The latest figures highlight how agricultural and energy costs continue to shape Mexico’s inflation. While the annual rate has slowed, essential goods like tomatoes, chili peppers, and fuel remain key factors in rising living expenses. These trends will likely influence economic planning and consumer spending in the coming months.