Economic Factors Driving Up Cost of Living
The current state of the global economy, government policies, and interest rates are the primary factors contributing to the anticipated increase in the cost of living in Mexico by 2026. These factors have led to 38% of Mexicans believing their standard of living will decrease.
According to Ipsos’ 2025 Cost of Living study, 18% of respondents expect a decline in their living standards next year, while 20% anticipate a decrease in income. Furthermore, 65% believe taxes will rise, and 76% expect overall price increases.
Anticipated Increase in Expenses
In the coming six months, Mexicans foresee a general rise in their daily expenses. 73% expect food prices to increase, 72% anticipate higher home service costs (gas and electricity), and 73% believe gasoline prices will rise. Additionally, 62% expect social activities to become more expensive, and nearly half (48%) predict higher rents and mortgage payments.
“The study’s data reveals a global context where, although some economic signals provide reassurance, the future outlook is predominantly negative. Despite Mexico’s current situation not being ideal, optimism persists among some individuals. The sentiment of uncertainty and concern over inflation, unemployment, and economic instability poses a challenge for everyone—businesses, governments, and consumers,” stated Fernando Álvarez Kuri, Senior Business Director for Ipsos in Mexico.
Glimpse of Optimism Amidst Challenges
Although the current economic situation is not favorable for Mexicans, there’s a sliver of optimism for 2026. At least 21% of respondents anticipate having more money next year, placing Mexico among the top countries with this positive outlook, just behind Thailand (28%), India (23%), and Colombia (23%).
Thirty-four percent of respondents believe Mexico is in an economic recession, while 40% are unsure. Regarding unemployment, six out of ten Mexicans expect an increase in joblessness in the near future.
Global Perception of Rising Cost of Living
The Ipsos study illustrates how citizens worldwide perceive the current cost of living, their financial situation, and future economic prospects. Despite some improvement signals in certain countries, global economic uncertainty remains the central theme.
On average, globally, 37% of people say they are living comfortably, 32% state they barely make ends meet, and 27% feel economically strained. In Mexico, the situation is also perceived as challenging, with only 7% responding that they live comfortably, 22% stating they are “doing well,” followed by 34% who “barely make ends meet,” and 33% experiencing economic difficulties.
Sixty-eight percent of global respondents believe inflation rates will rise in the coming year, and 76% of Mexican respondents agree on an increase within the next twelve months.
The top three reasons for the global rise in living costs, according to the study’s results, are: the state of the global economy (72%), local government policies (68%), and interest rate levels (65%).
These findings are based on a survey conducted across 30 countries by Ipsos using their online platform, Global Advisor, among a total of 23,772 adults.
Key Questions and Answers
- Q: What factors are driving the anticipated increase in the cost of living in Mexico by 2026? A: The primary factors are the current state of the global economy, government policies, and interest rates.
- Q: How do Mexicans perceive their future expenses? A: 73% expect food prices to rise, 72% anticipate higher home service costs, and 73% believe gasoline prices will increase.
- Q: What percentage of Mexicans believe their living standards will decrease? A: 38% of Mexicans expect a decline in their living standards.
- Q: How do people globally perceive their financial situation? A: On average, 37% of global respondents say they are living comfortably, while 32% state they barely make ends meet.
- Q: What percentage of Mexicans anticipate an increase in unemployment? A: Six out of ten Mexicans expect an increase in joblessness in the near future.
