To express its commitment to this mandate, since 2001 the Bank of Mexico has implemented its monetary policy within an explicit inflation-targeting scheme. Starting from double-digit annual inflation, references were gradually reduced, and since 2003 the permanent target has been 3 percent annual inflation. This commitment refers to headline inflation as measured by the National Consumer Price Index (INPC).
A variability range of plus/minus one percentage point around this benchmark was added later, an addition which should not be interpreted as a target but as an acknowledgment of uncertainty stemming from the highly volatile nature of some components of the price index.