The index has been stuck in this environment all year, with ups and downs, although at the end of the year there was again a certain downward trend.

Mexico's National Consumer Price Index (NCPI) fell to 4.21% year-on-year in December, down 0.34 percentage points from November, Mexico's National Institute of Statistics and Geography (INEGI) reported Thursday.

The index has been stuck in this environment all year, with ups and downs, although at the end of the year it has again shown a certain downward trend, after the increase in October. However, it still shows some resistance to falling to the target range set by the Mexican central bank (Banxico).

In this context, it is worth recalling that the central bank decided at its December monetary policy meeting to cut interest rates by 25 basis points to 10%.

This was the fourth consecutive time that it opted for this magnitude of cut and we will have to wait until February to see what future moves will be made.

Monthly inflation also fell in December, to 0.38%, compared to 0.44% in November.

The underlying index, for its part, rose significantly to 0.51% monthly (compared to 0.05% in November), while it rose compared to the previous month by just under a tenth, to 3.65%.

By spending division, education has again been the group with the highest year-on-year increase (5.79%), closely followed by other services (5.77%). Meanwhile, food, beverages and tobacco has reached 3.60%, compared to 3.56% in November.