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Is everything expensive or am I just poor?

inflation rises, Mexican wine & house party

Author

Rocio L
July 11, 2024

Welcome to another edition of CDMX iykyk 🤩

Before we get started, I'd like to ask a favor: if you've found this newsletter valuable, please consider sharing it with fellow expats, digital nomads, or friends interested in accessible news about Mexico in English. You can use this link to spread the word.

Thank you for your support!

With that ask out of the way, let’s get into it.

TOP NEWS 

Sad Miguel from Rebelde

Mexico's Inflation Surges to 4.98% in June

Mexico's headline inflation surged beyond expectations in June, largely driven by a sharp rise in fruit and vegetable prices. Clutch your purse tightly!

Tell me more.

This marked the fourth consecutive month of inflationary uptick, with consumer prices climbing to 4.98% from May's 4.69%. The figure surpassed the median forecast of 4.87% projected by analysts surveyed by Bloomberg, hitting its highest point in a year. 

The spike was fueled by peso depreciation post-election amidst political uncertainty over proposed constitutional reforms. Notably, produce prices saw a substantial 19.73% increase in June, up from 18.55% in May, attributed in part to widespread drought conditions that were somewhat mitigated by June rains.

On a brighter note, core inflation, which excludes volatile food and energy prices, continued its decline for the 17th consecutive month, dropping to 4.13% in June from 4.21% in May.

What does this mean?

This persistent inflationary trend has kept Mexico's inflation rate above the 3% target set by the Central Bank (Banxico) for 40 consecutive months

Banxico's upcoming monetary policy meeting on August 8 will be crucial, following its decision in late June to maintain the benchmark interest rate unchanged despite mounting pressures. The recent uptick in headline inflation complicates the central bank's efforts to consider future rate cuts, although experts like Kimberley Sperrfechter from Capital Economics suggest that easing core inflation and other economic indicators may still leave room for a rate cut in August.

🍷 Have you visited the ‘Napa Valley of Mexico’? 

🌧️ Mexico had its rainiest June in more than 80 years.

🚆 Sheinbaum announces new train routes to Northern Mexico.

🌳 Canal Nacional in Mexico City awarded the DNA Paris Design Award 2024.

🔠 Indigenous Mexican languages now supported by Google Translate.

CULTURE & HAPPENINGS
DID YOU KNOW? 

That CDMX doesn’t have an equivalent to Goodwill or the Salvation Army. However, you can donate clothes and other items to your cleaning lady, as well as to garbage collectors, who often distribute these donations to their families and communities.

ODE TO MEX

This section showcases my love of Mexican art, films and music. Each week, I'll offer a handpicked recommendation to deepen your connection with this magical country and its people. 

I’ve been rewatching Netflix’ Taco Chronicles because I’m a hungry girl perpetually on the lookout for the best eats. They feature some popular taco spots in CDMX, so it's worth checking out.

VIRAL VAULT

Welcome to our reel-y awesome corner, where memes reign supreme and giggles are guaranteed.

Thank you for subscribing and reading CDMX if you know, you know – it's a labor of love fueled by curiosity, and now coffee! ☕️

This project is self-funded, and if you would like to support the newsletter, you can now buy me a coffee.

Thank you for reading.