End of Electricity Subsidies Pushes Up Prices in Tabasco, Yucatán and Quintana Roo

Mexico City — The expiration of warm-season electricity subsidies made Tabasco, Yucatán and Quintana Roo the states with the steepest price increases in Mexico in October 2026, according to official data.

Prices rose 2.4% in Tabasco, 1.6% in Yucatán and 1.4% in Quintana Roo during the month, economists at brokerage Actinver said in a report — precisely the states where the electricity subsidy ended.

INEGI, the national statistics agency, reported that annual headline inflation nationwide stood at 3.75% in October, up from 3.57% in the same month of 2025. The Consumer Price Index (INPC) reached 147.026 points in October, a 0.65% increase from the previous month.

Electricity Tariffs Jump 18.5%

According to Banamex’s economic research division, electricity tariffs climbed 18.51% as subsidies for the warm season expired in several cities, while liquefied petroleum (LP) gas rose 3.67%. LP gas prices in Mexico have now posted two consecutive months of sharp increases, driven by pressure from international fuel prices.

The bank noted that the war involving the United States, Israel and Iran has constrained the federal government’s subsidy policy and its agreements with fuel distributors on gasoline and diesel prices.

Actinver said Quintana Roo and Jalisco are the only states with year-to-date inflation above 5%. They are followed by Colima at 4.8% and Yucatán at 4.7%.