In Mexico, poverty has increased due to rising food prices. According to data from the National Institute of Statistics and Geography (INEGI), labor poverty grew in the second quarter. In nominal terms, the minimum amount a person needs to cover only their food needs was 1,844 pesos in the rural area and 2,450 pesos in the urban area. If the non-food basket is included (housing, transportation, education, and personal care), the total value of the income poverty line reached 3,411 pesos in the rural area and 4,759 pesos in the urban area. The products that most influenced the increase were food and beverages consumed outside the home, beef steak, and pasteurized milk. INEGI explained that food had the greatest impact on the annual change in poverty lines, contributing 50.6% in the rural area and 59.9% in the urban area. In October, the value of the food basket increased by 4.3% in urban areas and by 2.9% in rural areas. This figure surpassed the general annual inflation, which was 3.6%, showing that food prices are rising faster than the overall price average. In the rural area, the increase in the food basket, on the other hand, remained below the general price level. Among the products that most influenced the rise are food and beverages consumed outside the home, beef steak, and pasteurized milk. Food prices have again grown above general inflation in Mexico. Eating out became 7.5% more expensive and accounted for more than half of the total increase, both in rural and urban areas. The indicator reflects the effect of prices on purchasing power and allows for an assessment of how much it costs each month to guarantee sufficient nutrition in Mexico. The price of beef rose by nearly 19%, while milk increased by 8.6%. In urban areas, spending on education, culture, recreation, and housing also had an influence, albeit to a lesser extent. With this update, the institute resumes the monthly publication of poverty lines, a task that was performed by CONEVAL until March of this year.
