The increase in the special tax on production and services (IEPS) for sodas has caused a 0.8% rise in the basic basket in urban areas and 0.5% in rural areas in Mexico, as reported by Inegi.
The special tax on production and services known as IEPS, imposed on both cola and flavored soft drinks, has begun to affect the financial situation of Mexican households. In January 2026, these price increases contributed to a rise in the basic basket, which recorded a monthly increase of 0.8% in urban areas and 0.5% in rural regions, according to data from the National Institute of Statistics and Geography (Inegi). This development indicates that consumers are increasingly feeling the impact of tax policies on their everyday expenditures.
According to Inegi's poverty line indicators, individuals living in urban areas needed to spend 4,843.11 pesos monthly to satisfy their basic needs, whereas rural dwellers required 3,465.76 pesos. The report highlighted that cola and flavored soft drinks were the primary contributors to the increase in the basic basket in rural zones. However, in urban settings, the most significant impact was attributed to the rising costs of food and beverages consumed away from home, further demonstrating the diverse factors affecting household budgets.
The implications of this taxation and its resulting price hike on consumer goods are far-reaching. It not only exacerbates the already challenging economic conditions faced by families in Mexico but also raises questions about the effectiveness of such tax policies in addressing health issues related to sugary drinks. As Mexicans navigate these rising costs, it becomes increasingly clear that the fiscal strategies involving consumption taxes carry significant weight in the economic landscape.
