Mexico remittances reach $5.57 billion in July amid declining purchasing power

Mexico received $5.571 billion in remittances in July, marking the sixth consecutive month of growth and the second-highest monthly total for 2026. According to Banco de México (Banxico), this represents a 3.0 percent annual increase. The funds were distributed through 13.1 million transactions, with an average transfer of $426 per transaction.

Despite the record dollar amounts, the real purchasing power of these remittances has declined. When converted to Mexican pesos and adjusted for inflation, the average monthly income per family saw a real decrease of 6.6 percent compared to July 2025. This decline is attributed to a 6.6 percent appreciation of the exchange rate and a 3.1 percent annual inflation rate.

Data from INEGI indicates that the average monthly remittance of 7,438 pesos is currently insufficient to cover the urban food basket for a three-person household, which cost 7,637 pesos in July. While the flows remain resilient and support household consumption, the appreciation of the peso presents a challenge for the effective recovery of consumer purchasing power.