As Mexico continues to struggle with a flat economy and high competition among the soft drinks companies, Reuters today reported that Pepsi Bottling Group has lowered prices on soft drinks in Mexico City to help boost sales.

PBG has cut the price of its 600 ml bottle to 5 pesos ($0.44), down from 6 pesos. Meanwhile the price on its 2.5 litre bottle was cut to 11 pesos from 12 pesos. These are PBG's best-selling formats.

"Pricing actions are taken to ensure we have the right value for consumers in light of the current competitive environment," PBG's spokesman Michael Goodwin told Reuters.

The company said the price reductions may also be taken in other cities.