Background on the Financial Squeeze (Cuesta de Enero) in Mexico
In Mexico, six out of ten individuals face the January financial squeeze primarily due to December expenses, according to a Research Land survey. These expenses often include holiday gifts and end-of-year celebrations, reflecting persistent seasonal consumption patterns without solid financial planning. The survey was conducted by Research Land, the market research agency of Grupo UPAX.
Key Findings from the Research Land Survey
- 60% of respondents attribute the financial pressure to December expenses
- 19% mention poor management of end-of-year bonuses
- 13% did not receive or received less in end-of-year bonuses
- 8% cite El Buen Fin sales and promotions as a triggering factor
Beyond Cultural Perception: The Economic Reality of the January Squeeze
Pablo Levy, General Director of Research Land, explains: “The January squeeze reflects a structural tension between income, habits, and prices. It occurs when households reach December with very tight financial margins and face the start of the year with prices that do not return to previous levels, especially for food, transportation, and services.”
Inflation and Financial Strategies
The economic context plays a crucial role in the financial pressure faced by households in 2026. The Bank of Mexico estimates an inflation rate between 3.5% and 3.7% for the first quarter of the year. As prices for essential goods continue to rise, many people perceive their money as less valuable and face the January squeeze with reduced financial margins.
- 41% of survey respondents admitted to spending more than they should
- 24% attributed the pressure to inflation as the primary factor affecting their budget
- 19% combined excessive spending and increased product costs
- 16% mentioned pre-existing debts as a contributing factor
Levy emphasizes: “While average inflation may signal stability, consumers don’t buy averages; they purchase food, pay for transportation, and services that are still more expensive than two or three years ago. This creates a sense of financial strain after December.”
Duration and Perspectives of the January Squeeze
The financial pressure does not disappear after January. At least 49% of participants consider their difficulties concentrated only in that month. However, one in four anticipates the challenges extending to February or even March; 15% expects problems until the first half of February. This demonstrates that December consumption and high prices impact the early months of the year.
Regarding the role of authorities and financial institutions, the survey shows a divided stance. At least 44% considers the January squeeze an individual responsibility, but there are also expectations for structural actions. These include controlling basic goods’ prices (24%), strengthening financial education (17%), and offering better credit conditions during high-pressure periods (15%).
“This phenomenon cannot be resolved solely through individual discipline. The data show a social demand for more financial information and education, as well as economic conditions that do not disproportionately penalize households at the start of the year,” concludes Pablo Levy.
