As almost everybody in US and Canada, we are concerned about the inflation. One that has been intense in the last semester. Therefore, we organized a shopping activity to compare how inflation affects the United States and Canada and how it relates to the inflation down in Mexico. And we found huge savings.
As you may know, I have lived in Mexico for the past twenty years. So, we wanted to show you that the prices haven’t been affected as much as we find here in the United States. That way, there is yet another argument and cost analysis reason for the intelligence of retiring in Mexico and still being able to go back and forth between both countries.
Now, we’re using the basic basket of goods that The United States and Mexico use to calculate inflation. As it is a huge basket of goods, we are starting just with 20 different items in a typical diet—things like avocados, milk, bread, eggs, and tuna.
This is only Phase I of our plan as we think a second phase might even have some essential pharmaceutical products. Some basic pharmaceutical goods, things that retiring people may need, maybe a curb of diabetes or high blood pressure. I’d be very interested to see how they compare in both regards.
Well, we decided to keep it as comparing apples to apples. Thus, we went to a Walmart in the suburbs of Indianapolis and compared it with Walmart in Playa del Carmen, Mexico.
Actually, we tried to choose those products that are easily available in Mexico, as well as easily available here in Indiana.
So here is what I found. The first positive signal is that the higher the exchange rate in favor of the USD, the more beneficial it is to live in Mexico. That is, the more pesos you get in an exchange rate, the more products, and services you can get per USD.
Out of our pool of 20 grocery items, there were only four items that actually cost more in Mexico. Although the difference was very little, just a couple of cents.
- Tide detergent
- Loaf of bread
Of these items, I was slightly surprised by the cost of bananas and bread. I do know that in Mexico’s public markets, all vegetables and fruits are much less than at general grocery stores. And in this sample case above, we compared straight Walmart Indiana vs. Walmart Playa del Carmen.
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This brings up the other fact, the public vegetable & fruit markets are wonderful places to find organic foods and excellent produce. Also, if you are surprised by the difference in the prices you see from buying in Indiana Walmart vs. Playa del Carmen Walmart, wait and see. Savings only increase tremendously when shopping at these Mexican public vegetable and fruit markets.
There are various alternative products for the other two items, Tide detergent, and Colgate toothpaste. But also, there are plenty of grocery stores to shop, compare, and discover for yourself the savings you can get. These stores include Chedruai, Mega Soriana, Sams Club, Costco, and various regional grocery stores.
You will be surprised by the amounts you will save just by living in Mexico.
On the other hand, some items that caught my eye as to considerable cost savings include
- Toilet Paper
- Cooking Oil
These items listed above have cost savings in Mexico by more than half the price of what you commonly find available in the USA. With our quick sample of 20 random items, we saw a savings of 34%. A rough sampling where for every USD 100 that you spend in a USA Walmart, you would only be paying USD 66 in a Mexican Walmart.
As mentioned above, there are many other grocery stores that you will find in Mexico where the cost savings are even HIGHER!
I catch myself saying to my family and friends, “Winter is coming. We need to prepare”. I probably say that a lot, as I have been watching “Game of Thrones” lately.
However, I do think these words have some very significant meaning. I have read lately that the FARMER’S ALMANAC is predicting a much colder winter than usual. Along with the Russian War in Ukraine and its effect on the price of heating oil.
What I do know and strongly urge you to review is that these current situations in 2022 deserve your closer attention and analysis of the “living in Mexico” option as an intelligent response to these facts.
Keep warm and contact us with any and all of your questions regarding Mexico Real Estate.