The article examines the recent effects of the January cost of living increases in Mexico, particularly focusing on inflation triggered by higher taxes on tobacco and soft drinks. These adjustments, governed by the IEPS tax system, are contributing to the struggles of consumers in an economy already facing a downturn. The data from the National Institute of Statistics and Geography (INEGI) indicates that this cost of living increase is significant as it reflects broader trends in the inflationary landscape of the country.

In November 2025, the report highlights a notable drop in private consumption, which saw a decline of 0.5% following a slight increase of 0.8% in October. This downturn marked the first negative monthly result in consumer spending on goods and services since May of that year. These figures raise concerns about the momentum of the retail economy, especially coming off the Buen Fin, an annual discount campaign that failed to boost sales expectations significantly before year-end.

The article encapsulates the ongoing economic challenges that Mexican consumers face, particularly in navigating inflation and consumption dynamics. As the inflationary pressures continue to squeeze household budgets, understanding these factors is crucial for policymakers and economists seeking to stabilize the economy and support recovery efforts in the retail sector.