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INEGI: Mexico’s Urban Basic Basket Rose 4.3% in October

The official figures update poverty-income thresholds by capturing food costs in cities rising faster than overall inflation.

Overview

  • INEGI reported the expanded basic basket in urban areas now costs 4,756 pesos per person per month, compared with 3,412 pesos in rural areas after a 2.9% annual rise.
  • The urban food-only basket increased 4.3% year over year to 2,450.01 pesos per person, while the rural food basket stands at 1,844.15 pesos.
  • On a monthly basis, food-basket prices declined 0.2% in urban zones and 0.4% in rural localities in October.
  • Eating out (+7.5% y/y), beef steak (+19.4%), and pasteurized milk (+8.6%) were the largest contributors to the urban food-basket increase.
  • Entertainment and cultural items along with housing and basic services pressured the expanded basket, and the food-basket rise outpaced October’s 3.57% headline inflation.