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 > Inflation in Mexico

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moisheh

North America

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Posted: 11/30/21 06:19pm Link  |  Quote  |  Print  |  Notify Moderator

Lately El Imparcial has had many articles about the excessive inflation. Sonora is the hot dog capital of Mexico. A steamed bun with one or 2 weibies is stuffed full of onions, tomatoes, chilis, mayo and much more. It takes parctice to eat one standing up. Downtown in HMO there are dozens of vendors. they are usually 20 pesos . But thge cost of the ingredients has gone up. A case of tomatoes used to be around 150 pesos. Now they are 500. Onions up about 15%. Even the wienies are up. Now the price is 25 pesos but will have to go up even more. Other food products are also going up. In Canada or the USA this might be an inconvenience but in a country with a huge % of people living below the poverty line it means going hungry. Wages have really not risen much. However I have not noticed a lot of shortages. Last week red onions were hard to find. Most meets are available. Peso dropped the other day but has recovered some. Today I received 21.8 pesos per dollar including the ATM fee.

Talleyho69

Playa la Ropa, Zihuatanejo, Mexico

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Posted: 11/30/21 07:45pm Link  |  Quote  |  Print  |  Notify Moderator

We are really seeing the prices on produce vary due to the weather, and have in the past. Today tomatoes here in Zihuatanejo were 29 per kilo at the cheapest places. That's HIGH. But last week it was 39. It should drop soon. But yes, you are seeing changes.

Tortillas here have crept up from 15 pesos per kilo to 20, and talk is about possibly them going higher. That is a real indicator of inflation. At least here, a "typical" person consumes a kilo of them a day. WAY different from the way the norteamericanos eat.

Gasoline really hasn't changed significantly in a year or so, but centavos do make a real difference. Soft drinks have gone up at least 10%. Liquor is about the same for the last two years.

The restaurants that we visit are probably up 10%.

It's tough, and like we started to do when Covid hit, we changed our tipping from 15% to a generous 20% and never hesitate to tip anyone doing a service for us.

cptqueeg

Idaho

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Posted: 11/30/21 08:08pm Link  |  Quote  |  Print  |  Notify Moderator

Fresh produce prices are more indicative of supply and transportation issues rather than any overall inflation trend. Those prices can quickly change down although transportation is expensive and likely will remain so. Thanksgiving week in the US limits the output of produce while demand is peeking so that no doubt contributed to the price increases. Many packers of produce that is in storage have a 3, even a 2 1/2 day week for Thanksgiving so there is 40-50% reduction in output on commodities like potatoes, carrots, onions, cabbage, apples, etc reducing supplies during TGiving week.


Aren't corn tortillas subsidized by the MX gov? I do agree that tortillas are a great inflation indicator whether they are subsidized or not, though.

Talleyho69

Playa la Ropa, Zihuatanejo, Mexico

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Posted: 11/30/21 08:30pm Link  |  Quote  |  Print  |  Notify Moderator

Thanksgiving isn't celebrated here.

To some degree, prices on tortillas are, "controlled," but at least in the state of Guerrero are allowed to fluctuate some.

cptqueeg

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Posted: 11/30/21 08:41pm Link  |  Quote  |  Print  |  Notify Moderator

Talleyho69 wrote:

Thanksgiving isn't celebrated here.

To some degree, prices on tortillas are, "controlled," but at least in the state of Guerrero are allowed to fluctuate some.


I understand MX doesn't celebrate Thanksgiving but the produce markets are intertwined so demand and supplies effect availability and price in CA, MX, and the US.

A perfect example is carrots which are available from all 3 countries right now so a lack of US carrot production during Thanksgiving puts more pressure on CA and MX to make up the shortfall, thereby increasing prices and limiting availability.

playaboy

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Posted: 12/01/21 05:51am Link  |  Quote  |  Print  |  Notify Moderator

Here are some everyday examples of everyday inflation in my pueblo.

Last year, I paid 12p for a carne asada tacos, today it is 14p at the local carts in my town. My haircut went from 40p to 50p. A large shrimp cocktail was 145p, now it is 165p. Pollo asado (the ones bigger than a crow) with all the fixen's are now 165p. Even Costco raised the price of their hot dogs and drinks from 25p to 35p.

qtla9111

Monterrey, Mexico

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Posted: 12/01/21 05:59am Link  |  Quote  |  Print  |  Notify Moderator

The latest from PROFECO, November 2021 compares prices under EPN (Enrique Peña Nieto) and AMLO (Andres Manuel Lopez Obrador).

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2112

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Posted: 12/01/21 06:12am Link  |  Quote  |  Print  |  Notify Moderator

Interesting topic. Keep it coming. I assume using 21.5p/USD is an accurate exchange rate?

I miss driving down to Reynosa in the 70's and living like a king for a week on $40


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Talleyho69

Playa la Ropa, Zihuatanejo, Mexico

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Posted: 12/01/21 06:53am Link  |  Quote  |  Print  |  Notify Moderator

The way the rates vary and with a token ATM charge, we figure 20 to one. Easier.

Lwiddis

Quartzsite, AZ

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Posted: 12/01/21 01:19pm Link  |  Quote  |  Print  |  Notify Moderator

"...but the produce markets are intertwined..."

Very definitely produce is internationally traded.


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