“As the price per unit of mass consumption products increases, reaching an increase of 11.6%, households are buying 0.3% fewer units per trip. They are also looking at different size options, for example, they look for larger products in Food, while they go smaller when buying Beverages and Dairy,” says Kantar.
In order to continue consuming the same types of products, families also resort to two strategies: buy smaller presentations -in a phenomenon known as reduflation- or buying private label or own brand products, instead of line brands.
Inflation in Mexico has especially punished the poorest households. Labor poverty -which measures the evolution of labor income and its relationship with the cost of the food basket- increased from 38.3% to 40.1% between the second and third quarters of 2022, indicated the National Council for the Evaluation of the Policy of Social Development (Coneval).
According to analysts consulted by Reuters, inflation is expected to increase 7.93% annually during November, below the 8.41% in October and moving away from the record of 8.7% reached in August and September.
