The basic basket ‘eats’ 40% of the income

 Not enough minimum wage?  The basic basket 'eats' 40% of the income

Starting in 2024, just buying the basic basket will require up to 40 percent of the income of a person earning the minimum wage.

The above, is even though as many as 9 million workers will benefit from the increase in the minimum wage, which will be set at more than 7,500 pesos per month.

However, covering the needs of the 24 products included in the basic basket is a cost that “eats” a good part of the income.

In October of this year, the National Council for the Evaluation of Social Development Policy (Coneval) established the value of the basic food basket at 2,225 pesos per month per person, taking the next salary increase as a reference. spend 30 percent of their income just to buy basic products like eggs, tortillas, toilet paper, bathroom soap, etc.

Read Also:  "It is likely that Minister Montes will be saved": the commission on the Case of Treaties will vote on 5 reports

Data from the Federal Consumer Prosecutor’s Office (Profeco), at the end of November, established that the weekly consumption of a family of four residents in the central zone of the country involved costs between 740 pesos and up to 1,023 pesos.

Therefore, taking the lowest price as a reference, a family needs at least 2,960 pesos per month to cover the basic basket, that is, almost 40 percent of a person’s income must be used to buy food.

Jesús Carrillo, director of Sustainable Economy at the Mexican Institute for Competitiveness (IMCO), explained that the lower the income, the greater the proportion that must be allocated to the acquisition of food, which affects the reduction of spending in other areas such as in education or entertainment.

Read Also:  America is concerned about joint military action by China and Russia in the region

“The main expenditure of low-income families is allocated to food, the first and second deciles (the lowest income) spend more or less half of their income on food, drinks, and tobacco, which is how that the index is considered,” he explained.

“It’s very different from how they consume in the top decile, the top 10 percent of income, who only spend 28 percent of their income on food.”