Inflation in Mexico sped up in January as the new year saw new taxes launched by the government on products deemed unhealthy, including soda, cigarettes and video games, alongside an increased minimum wage and new tariffs on China and other mainly Asian countries that the Central American nation does not have a free trade agreement with. “We believe the effects of the tariffs that took effect at the beginning of the year will gradually impact merchandise inflation throughout 2026. However, these upward pressures will be partially offset by currency appreciation, low producer price inflation (1.5% year-on-year in January), and modest economic growth,” the Bank of Mexico said.
