Banxico Sees Only Temporary Hit to Inflation From Taxes, Tariffs

Mexico’s central bank expects that tax hikes on sweet drinks and new tariffs on mostly Asian goods that went into effect this year will only have a short-term effect on inflation going forward.

The assessment comes from the minutes of the bank’s latest interest rate decision issued last month and cites most members of its board. Published on Thursday, the minutes follow December data released earlier in the day showing that consumer prices sped up by a slower-than-expected rate in the last month of 2025.

Despite concerns that the double whammy of higher IEPS taxes and new import levies would ...