The peso is up to 17.533 today. Has anyone seen prices going up or are they about the same as last year?
Peso Exchange Rate
Posted 07 January 2016 - 04:34 AM
I'm not clear on what you're asking.
Are you asking if local prices in pesos for various goods and services have increased since a year ago? Of course they have, at least overall.
Are you asking if there's a significant correlation between the dollar-peso exchange rate and prices in Mexico for a broad range of goods and services? I'd say no. Stuff that Mexico has to pay for in dollars is likely to be more expensive as the dollar becomes more expensive, but there's that whole "economics" thing that might drive US sellers to offer lower prices as the dollar rises just to try to keep selling stuff. Or might not.
Overall, my personal experience is that what I'm paying in pesos for stuff on the island doesn't generally seem much more expensive than a year ago. The pesos I'm spending cost me less to buy with my dollars, though, so overall to me things seem a little cheaper.
To a Mexican (or an expat living like one), I'm told that things DO seem more expensive.
Posted 07 January 2016 - 06:44 AM
Thanks for the post Mark. Typically, I will bring $2,000 to $4,000 pesos home with me for the next trip. The $3,500 that I have now was at 14 to 1. I was thinking that I really lost out this time.
VideoVern (aka: Skip)
Steve - Will you be around the 1st couple of weeks in March?
VideoVern (aka: Skip)
"Optimism is going after Moby Dick in a rowboat and taking the tartar sauce with you!"
Posted 07 January 2016 - 09:29 AM
Vern,,, Driving down with kentmorrdave. Leaving January 19th. Arriving between the 28th. and 3rd. of February. Heading home sometime in April. Will run into you at Wendy's, The Pub, or Senior Iguanas.
Mstevens...Thanks. Just wondering if prices have started to increase due to the exchange rate. Many of the places I go to base their prices on an exchange rate of 12 to 1. Last year it seemed very inexpensive to me as the rate was almost 16 to 1 so I ended up tipping more than usual as it didn't cost me as much. For example, this year instead of tipping $50 pesos I will tip $85 pesos.
Posted 07 January 2016 - 09:31 AM
The Fed raising rates for the first time in almost a decade, and the rest of the world economy slumping, has the US dollar strengthening, but THAT RISE IN RATES could also have the effect on the tepid US recovery. Both the Canadian and Mexican economies are heavily dependent on resource extraction, especially oil, and are experiencing the effects of the global recession and the resultant $35 (and lower) oil price. Both the Canadian $ and the Mexican peso are at ten year lows relative (Canada 0.71 whereas a couple of years ago it was par) to the Greenback, but this is likely temporary as the US slides back into the double dip. In the meantime, I'm taking advantage of the strength of the US dollar and using it in Mexico. I brought my US dollars and spent them at 17-1, knowing, like everything else, it won't last. What goes up will come down. In this game, there are probably better odds at Vegas. By the way, generally, I've noticed a pretty steep increase in Cozumel grocery bill prices over last year. Given global integration, it's to be expected.
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