Cost of Living in Mexico Increasing

There has been a lot of discussion on the news lately about the increase in the cost of living in Mexico. Political opinions about the topic align along party lines with those in the PAN maintaining that the cost of living has only increased something like 3% (I don’t remember the exact number), while those of the PRD maintain that realistically, that percentage is more like 40% (again, I don’t remember the exact number) this year.

They are both right, but I agree with the 40% estimate. How can they both be right? The PAN is using an official index which considers the price of certain items and services. As a news commentator explained, included in the index are things such as the cost of airfare–things that only a small fraction of Mexicans ever actually purchase. The PRD must have taken a selection of items from the list that they consider to be used on a daily basis. Food items such as bananas, onions, and avocados have increased substantially in price.

I remember that 6 years ago, when we came, we were excited to be able to purchase avocados for 12 pesos a kilo! That’s about a dollar for two pounds! Now they are 25 pesos per kilo and have recently been as high as 35 to 40 per kilo.

The truth is that many items have increased, but I just can’t remember what the prices were before in order to be able to write about it. I do know that it takes more money to get the same amount of food when we go to the market. For the regular people of Mexico this is hard. Salaries aren’t going up.

For information about the cost of living in Mexico as it relates to planning to retire in Mexico you can read my page about some of the hidden costs in Mexico as well as a description of the cost of living based on lifestyle levels.

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