Divergent real wage trends reported in Mexico and Spain

Economic reports from Mexico and Spain present contrasting trends regarding real wage growth and inflation.

In Mexico, data indicates a period of sustained real wage increases. From December 2018 to July 2026, the country recorded 92 consecutive months of average monthly wage growth that outpaced inflation. This trend is attributed to significant increases in the national minimum wage and the North Border Free Zone wages. During this period, the National Consumer Price Index (INPC) saw a reduction from 7.37% in November 2021 to 3.117% by July 2026.

Conversely, in Spain, economic growth and job creation have not translated into improved purchasing power for many workers. Despite GDP recovering to pre-pandemic levels, data from Funcas shows that real wages for full-time workers in 2025 remained 2% lower than in 2019. While nominal wages rose, they failed to offset a 21.7% cumulative increase in prices between 2019 and 2025, leaving workers with diminished purchasing power.