What Products Contributed to Inflation in January 2026? How the IEPS Update Affected Prices

Background on Key Figures and Context

In January 2026, Mexico experienced a significant rise in annual inflation, reaching 3.77%, according to data from the National Institute of Statistics and Geography (Inegi). This increase was primarily driven by price hikes in cigarettes, soft drinks, and services offered at loncherías (lunch stands), fondas (small eateries), torterías (tortilla shops), and taquerías (tacos shops).

Products with the Most Price Increases

1. Cigarettes: With an increase of over 20%, cigarette prices rose due to the higher Impuestos Especial sobre Producción y Servicios (IEPS) tax rate approved for 2026.
2. Bottled Soft Drinks: Prices went up by 3.97%.
3. Loncherías, Fondas, Torterías, and Taquerías: These services experienced a 0.75% increase.
4. Own Home: Prices rose by 0.18%.
5. Tomatoes: Prices increased by 3.45%.
6. Electricity: Prices went up by 0.99%.
7. Restaurants and Similar Services: Prices increased by 0.49%.
8. Lemons: Prices surged by 15.21%.
9. Domestic Service: Prices went up by 1.28%.
10. Hair Care Products: Prices increased by 1.75%.

Products with the Most Price Decreases

1. Air Transport: Prices dropped by 27.30%.
2. Eggs: Prices decreased by 3.95%.
3. Domestic LP Gas: Prices fell by 1.83%.
4. Taxis: Prices went down by 1.57%.
5. Packaged Tourism Services: Prices decreased by 7.52%.
6. Serrano Peppers: Prices dropped by 10.56%.
7. Detergents: Prices decreased by 0.81%.
8. Lettuce and Celery: Prices fell by 5.97% and 3.29%, respectively.
9. Other Vegetables and Legumes: Prices decreased by 2.61%.

Key Questions and Answers

• What caused the rise in prices? The primary drivers of inflation in January 2026 were the increased prices of cigarettes, soft drinks, and services at loncherías, fondas, torterías, and taquerías.
• Why did cigarette prices increase so much? The significant price hike in cigarettes was due to a more than 20% increase in the IEPS tax rate for 2026.
• Which products saw a decrease in price? Air transport, eggs, domestic LP gas, taxis, packaged tourism services, serrano peppers, detergents, lettuce, celery, and other vegetables and legumes experienced price reductions.