SAN DIEGO (Border Report) — Business leaders in Tijuana are expecting inflation to increase by 10% in 2025 due to higher fuel prices and an increase in the minimum wage in Mexico.
Julián Palombo Saucedo, president of Tijuana’s Chamber of Commerce, says rents, business licenses and taxes are also going up, generating even higher operating costs to remain in operation.
He and his membership are considering whether to pass on additional fees to consumers.
“It looks like an inflationary panorama with everything going up in cost. All business owners are contemplating what do with these extraordinary expenses that will stretch our budgets.”
Palombo Saucedo expects some of these costs will in fact be subsidized by customers and clients.
“At the end of the day, as business owners, and in spite of difficulties and complicated days we face, we always try to find a way how avert a crisis. We have to find a way to persevere and turn this into an opportunity.”
When asked if he foresees lays offs in many industries, he said some will have to make adjustments to remain in business.
“We don’t expect massive layoffs, maybe we can adjust work schedules. We’re going to figure out a way to navigate this 12% increase in the minimum wage, somehow we have to make up the difference.”
Palombo Saucedo says some products have already gone up in cost such as cigarettes that now cost 8% more compared to just a few weeks ago.
Saucedo expects other items such as bread, tortillas and produce to go up in price as the year goes on.
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