Key Spending Categories in Mexican Households
According to the National Survey of Income and Expenditure in Households (ENIGH) 2024, conducted by Mexico’s National Institute of Statistics and Geography (Inegi), food tops the list of expenditures for Mexican families, accounting for 37.7% of their income.
On average, Mexican households spend 5,994 pesos monthly on food. This accounts for a significant portion of their budget, second only to housing and transportation, which together make up 20% of their spending.
Income Deciles and Food Expenditure
The Institute for Mexico’s Competitiveness (IMCO) analyzed the data and found that as household income increases, the proportion of income spent on food decreases.
“While all households allocate a large portion of their income to food and beverages, the proportion varies according to income levels,” explains IMCO. “For every 100 pesos spent by households in the lowest income decile, 51 pesos go to food and beverages. In contrast, high-income households allocate only 29 pesos of their total spending to this category.”
Food Consumption Breakdown
The ENIGH 2024 report indicates that the majority of food and beverage spending is on meats, averaging 1,082 pesos per household monthly. Cereals (751 pesos), other processed foods (589 pesos), and vegetables (521 pesos) follow closely behind.
Additionally, the three most significant spending categories in 2024 were food consumed outside the home (1,299 pesos), vehicle fuels (1,023 pesos), and essential goods and services, as per IMCO.
Transportation and Education Spending
IMCO’s analysis reveals that as household income rises, so does the proportion spent on transportation. In the top three income deciles, transportation accounts for 21% of total spending, compared to only 13% in the lowest income decile.
In terms of education and leisure, spending increases proportionally with income. Lower-income households allocate less money to educational services and items, while higher-income households prioritize this category more.
“Given the low quality of public education in the country, these differences in spending deepen educational disparities based on socioeconomic levels,” warns IMCO.
Growing Healthcare Expenditure
Another significant category is healthcare. On average, Mexican households spend 1,605 pesos every three months on hospital care, medical services, medical expense insurance, and over-the-counter medications.
This amount is 7.9% higher than in 2022. Healthcare expenditure constitutes between 2.7% and 4.1% of total household spending, with a relatively greater weight in the seventh and tenth income deciles.
Key Questions and Answers
- What are income deciles? Income deciles are a statistical tool used to analyze the distribution of income or wealth within a population. They divide the population into ten equal groups, ranked by income level from lowest to highest.
- How does food expenditure change with income? As household income increases, the proportion of income spent on food decreases. Lower-income households allocate a larger portion of their budget to food and beverages compared to higher-income households.
- What are the main food spending categories? Meat is the most significant food expenditure category, followed by cereals, other processed foods, and vegetables.
- How does transportation spending correlate with income? Higher-income households allocate a larger proportion of their budget to transportation compared to lower-income households.
- How does education spending vary with income? As income levels rise, so does the proportion of income spent on education and leisure activities.
- What trends are observed in healthcare expenditure? Healthcare spending has increased by 7.9% compared to 2022, accounting for between 2.7% and 4.1% of total household expenditures.
