LatinNews Daily - 25 September 2026

*Mexico’s national statistics institute (Inegi) has reported that economic activity grew 0.8% month-on-month in July 2026, on seasonally adjusted figures, based on the global economic activity indicator (Igae), a monthly proxy for GDP. In annual terms, the Igae rose 3.3% on a seasonally adjusted basis, or 3.4% on non-seasonally adjusted figures. This came after the monthly Igae showed no variation in June and contracted by 0.3% in May. The annual rate is up from increases of 1.7% and 1.9% in June and May respectively and marks the highest annual increase of President Claudia Sheinbaum’s term so far, which began in October 2024. Tertiary activities, or services, led with monthly growth of 1.2%, while secondary activities, comprising mining, construction, utilities, and manufacturing, grew 0.5%. Primary activities fell 1.1% on the previous month. In yearly terms, primary activities were down 0.6% while secondary activities increased by 2.4% and tertiary activities were up 4.0%. The Igae results were published as Mexico’s central bank (Banxico) held its benchmark interest rate at 6.50% for a third consecutive meeting, with its five-member board voting unanimously. The central bank said headline inflation rose from 3.10% to 3.42% between the first half of July and September, pushed up by non-core inflation, while core inflation eased from 3.95% to 3.79% over the same period. It maintained its forecast that headline inflation will converge to its 3% target only in the fourth quarter of 2027. Banxico also flagged rising uncertainty from abroad, noting the US Federal Reserve had enacted a 25-basis-point rate hike in September and continued volatility linked to the Middle East conflict. Banxico said it will base future decisions on the pace of the slowing of inflation, exchange rate pass-through, economic slack, and inflation forecasts.