According to recent reports, the country’s retail sales dropped in the month of January as compared to the same period last year, slowing the country’s recovery from recession as higher taxes and government-set prices forced consumers to shut their wallets.

As per the data revealed by the National Statistics Agency, retail sales slipped 1.8% in January 2010 as compared to the same period of time in 2009. Analysts had anticipated sales to climb 2.0 percent.

Moreover, the Central Bank is looking for the recovery in the economic system between 4-5% in 2010 after shrinking 6.5% in last year, its worst contraction since 1932.

Further, the recession matched with a decline in crude oil exports and slammed public coffers, forcing country to increase taxes from January and increasing government-set prices for fuels as well as electricity.

That is seen limiting Mexico’s recovery in 2010.