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Impact of inflation in LC


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am not one who typically watches the news, due to all the misinformation these days. But recently I read an article stating how much inflation is impacting Mexico's economy, especially gas and food prices, so I just wanted to get the groups thoughts on it.

This war in Ukraine, along with the residual economic effects from the pandemic are wreaking havoc on the global economy, and I am sure this has something to do with the rental prices, and economy in the Lake Chapala area.

Are any of you seeing or experiencing signs of inflation in your daily life?

I look forward to hearing your feedback.

Thanks,

Dante 

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1 hour ago, ibarra said:

Inflation is a way of life, no matter what the cause.  Prices always go up, never come down.  If adjustments need to be made to our spending, so be it...adjust.   

This inflation is a weapon-!!!--Yea one will adapt---STARVATION AND DEATH-- especially in the third world-- War is a way of life ;too--It's the evil of man-!!

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2 hours ago, DanteNXS said:

am not one who typically watches the news, due to all the misinformation these days. But recently I read an article stating how much inflation is impacting Mexico's economy, especially gas and food prices, so I just wanted to get the groups thoughts on it.

This war in Ukraine, along with the residual economic effects from the pandemic are wreaking havoc on the global economy, and I am sure this has something to do with the rental prices, and economy in the Lake Chapala area.

Are any of you seeing or experiencing signs of inflation in your daily life?

I look forward to hearing your feedback.

Thanks,

Dante 

This is a world crisis--you will feel it soon---If you can't find the truth --I'll give you my take--This is serious--We are in the end times--The demons of hell are making their last great push and I'm not that religious--But a dead give away is that these demons are coming after our children !!!!!!!!!!!.

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2 hours ago, DanteNXS said:

am not one who typically watches the news, due to all the misinformation these days. But recently I read an article stating how much inflation is impacting Mexico's economy, especially gas and food prices, so I just wanted to get the groups thoughts on it.

This war in Ukraine, along with the residual economic effects from the pandemic are wreaking havoc on the global economy, and I am sure this has something to do with the rental prices, and economy in the Lake Chapala area.

Are any of you seeing or experiencing signs of inflation in your daily life?

I look forward to hearing your feedback.

Thanks,

Dante 

Odd; check your name  Read " Dantes Inferno --curios ?--odd--

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3 hours ago, ibarra said:

Inflation is a way of life, no matter what the cause.  Prices always go up, never come down.  If adjustments need to be made to our spending, so be it...adjust.   

I'm in ibarra's corner on this one....

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You can put forward any excuse you want regarding the causes of inflation, be it higher fuel costs, the war in the Ukraine, Putin or Covid. They give politicians, regardless of party, the perfect cover, especially with the mid-term elections on the horizon. Sadly, leadership is thin on the ground, and we may see Global Warming but not in the way those who believe in it will expect. Instead, we will all glow green. As for the cost of rental properties in Lakeside, they were on the increase way before the war in the Ukraine.

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43 minutes ago, Richmond said:

You can put forward any excuse you want regarding the causes of inflation, be it higher fuel costs, the war in the Ukraine, Putin or Covid. They give politicians, regardless of party, the perfect cover, especially with the mid-term elections on the horizon. Sadly, leadership is thin on the ground, and we may see Global Warming but not in the way those who believe in it will expect. Instead, we will all glow green. As for the cost of rental properties in Lakeside, they were on the increase way before the war in the Ukraine.

I would think the cost of rentals is a factor of demand vis supply??

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Economy was in a great place during last US Administration and we were reaping benefits here in Mexico. Now, as you say. food and gas prices have risen and the rest of the economy is under stress. This is not "normal" inflation; it was created by poor economic decisions. Simple as that. It was bad before Putin jumped in, so this is not on him, contrary to some.

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Covid has put ALL the supply chains in jeopardy. imho, it would be far worse if the U.S. administration had not changed and Putin has just made it worse because he invaded the bread basket of a great many countries. 

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My hope was to get a current gauge of the economic situation in Lakeside, I wasn't trying to obtain any left vs right viewpoints, or cause any discourse among the group. 

The article I read was published in a newspaper from Mexico City, and was written by a Mexican reporter. Apparently the inflation rate in Mexico has increased dramatically over the past 3 years, and I just wanted to get the groups feedback on how it's affecting them and the LC region.

Thanks again 

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Our observation is among the most inflationary things lakeside are restaurants and local government.  Plus at least in and around Ajijic the cost of real estate and rents.  Costco prices for imported goods have jumped, local food not so much.  Gasoline has gone up a lot less percentage wise than NOB but that is the result of deliberate action by the Mexican government.  Natural gas is up nearly 50 percent.  The economics of solar hot water and electric are better than ever.

Fortunately, with a little planning one can really limit their energy consumption here and costs for same.  Where we are at, we neither heat nor cool except for the use of a portable heater for a few hours on the coldest days.  

Overall, I don't think locally that home owners have seen near the inflation they are having NOB.  If we lived up there still, we would have gotten blasted by heating costs this winter and continually the near tripling of gasoline costs since we used far more of both there than we do here.

One cannot simply look at this from a purely local perspective and ignore the near total interconnection of Chapala with the global economy.  These problems have roots in megatrends and policy errors all over that go back for a number of years.   

An example of a key megatrend player in current events is having vital goods and medicines manufactured on the other side of the planet from where the primary markets are with resulting dependence on long, vulnerable and costly supply chains.

How much better off would everyone in this hemisphere be if all that production that went to India and China went to Mexico, Central and South America instead?

The problems were exacerbated IMO by a severely damaging mishandling of covid and wanton money printing in key countries that also goes back quite a long way.  Think of it as a toxic combination of older chickens coming home to roost with a rash of seriously stupid policy errors in a number of key places piling on.  

Regardless of any partisan labels, I believe the latter is the result of a political, economic and "educational" elite that is so disconnected from reality and the rest of us they are doomed to make gross mistakes and drag the rest of us along from one disaster after another quite unwillingly. 

The ruling class and their billionaire sponsors have become a liability for everyone including themselves.  And for the most part, none of them have a clue why this is so.

4 minutes ago, Whipstock said:

It's so bad; my $0.02 opinion, now cost $0.04!

That's a bargain, I'll take it.  But is that in Pesos?  :D 

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Jim Bowie…. As a matter of fact the USA GDP for 2019  the last year of the previous administration was 2.1 %..one of the lowest in many  years as it began to slide down the toilet due to the pandemic The USA GDP for 2021 was 5.7% .The high rate of inflation in the USA is partially due to the rise in  productivity ,wages and the broken supply chain due to the pandemic. Inflation is caused entirely by supply and demand and at the moment the demand far exceeds the supply . Most of the western democracies are suffering a somewhat similar rate of inflation as they to experience supply issues . Global oil production in 2021 surpassed 2019 and will increase in 2022 to an all-time high. The US oil production in 2021 was close to the all-time high of 2019 and will exceed both those figures in 2023.. The cost of oil extraction in the US is approximately $35-$50 a barrel depending on its source…. With the cost of oil over $100 per barrel please tell me just who is screwing the pooch .

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Put all the b.s. about the last U.S. administration and other politics aside. Insert the words Covid, supply chain and the resulting FED spending to keep the US economy afloat.

All this and the ensuing Congressional spending by both parties has led to incredible upheavals in fiscal spending.  Remember when Evil put his signature on the first Covid checks?  You can blame both parties and the overstimulation of the economy because of Covid shutdown of the economy.  Get Real !

OK, talk about the topic of inflation in LC:  All you need to do is go into Walmart every two weeks and you will see products continually increasing.  Go to the tortillerias on the street and you will see how much the cost for the common Mexican family is increasing for its food staples.  Take a look at OUTRAGEOUS prices for avocados ( gracias, cartels!) -- we have even quit buying them.  IT is more than restaurants and local governments raising prices here.

The sad thing about MX is that the average MX person here is really hurting from ongoing inflation, which ended around 7.8% in MX at the end of the year, well before the war.  The war in the Ukraine is certainly not helping ease inflation any time soon and that goes for the entire world.  Oh, and if we are discussing governments --- this MXN administration has done nothing for its people.   Covid be damned -- if it weren't for other countries helping MX, it is doubtful we would have even seen vaccines here. The Economist magazine just had an article about countries who helped their impoverished populations with and without Covid and Mx came in at spending less than 1% of its GDP, less than some poor African countries.  Meanwhile, one of the most indebted countries in the world, Argentina, spent 5% of its GDP to help its impoverished.

Brazil, with a questionable guy like Bolsonaro as its head, has reduced poverty by a quarter in the past decade.  So, compare that to how MX is helping its people!  

As far as the question goes about the inflation in LC?  Well, you can see how kaputz much of the real estate market is for many people, thanks to many gringos selling their US real estate at outrageously exorbitant prices and bringing the cash down here to "downsize".   That has drastically affected real estate here and not in any good way, unless you are a real estate agent here.   

 

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21 minutes ago, mexijims1 said:

Put all the b.s. about the last U.S. administration and other politics aside.

,....snip

After saying that, you proceeded to express your opinion on multiple governments and political views. 

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4 hours ago, Ian Greenwood said:

Jim Bowie…. As a matter of fact the USA GDP for 2019  the last year of the previous administration was 2.1 %..one of the lowest in many  years as it began to slide down the toilet due to the pandemic The USA GDP for 2021 was 5.7% .The high rate of inflation in the USA is partially due to the rise in  productivity ,wages and the broken supply chain due to the pandemic. Inflation is caused entirely by supply and demand and at the moment the demand far exceeds the supply . Most of the western democracies are suffering a somewhat similar rate of inflation as they to experience supply issues . Global oil production in 2021 surpassed 2019 and will increase in 2022 to an all-time high. The US oil production in 2021 was close to the all-time high of 2019 and will exceed both those figures in 2023.. The cost of oil extraction in the US is approximately $35-$50 a barrel depending on its source…. With the cost of oil over $100 per barrel please tell me just who is screwing the pooch .

Your numbers are a total joke!!! Oil and gas are fungible and worldwide numbers...The US numbers were directly affected by you know who restricting drilling, fracking, pipeline construction and more. The US was energy independent and a net exporter before you know who took over...GET REAL!!!! 

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Of course inflation is happening here...."When the US sneezes, México catches the flu". Look at the disaster unfolding El Norte (and don't blame Putin!). It is here now and we will have to live with it until and if they get thier S--T together up there!!! I just gave my maids and gardeners (a family who has worked for me for over 12 years) a 20% raise since they are the real victims of this insane maleficence!!! 

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18 minutes ago, gringohombre said:

Of course inflation is happening here...."When the US sneezes, México catches the flu". Look at the disaster unfolding El Norte (and don't blame Putin!). It is here now and we will have to live with it until and if they get thier S--T together up there!!! I just gave my maids and gardeners (a family who has worked for me for over 12 years) a 20% raise since they are the real victims of this insane maleficence!!! 

The problem is criminals running Gov't--Counterfit money chasing too few goods--The US didn't sneeze; Biden shite his pants--now we are stuck cleaning up his mess-!! Lucky maids and gardeners--I don't get no cost of living raise--I just cut back--HA

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12 hours ago, ibarra said:

Inflation is a way of life, no matter what the cause.  Prices always go up, never come down.  If adjustments need to be made to our spending, so be it...adjust.   

 

9 hours ago, RickS said:

I'm in ibarra's corner on this one....

We need to get rid of the federal reserve and stop living off bowored money--I thought counterfiting was  illegal --Oh; not for the little guy-The whole world is one big B.S.--

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7 hours ago, Mainecoons said:

Our observation is among the most inflationary things lakeside are restaurants and local government.  Plus at least in and around Ajijic the cost of real estate and rents.  Costco prices for imported goods have jumped, local food not so much.  Gasoline has gone up a lot less percentage wise than NOB but that is the result of deliberate action by the Mexican government.  Natural gas is up nearly 50 percent.  The economics of solar hot water and electric are better than ever.

Fortunately, with a little planning one can really limit their energy consumption here and costs for same.  Where we are at, we neither heat nor cool except for the use of a portable heater for a few hours on the coldest days.  

Overall, I don't think locally that home owners have seen near the inflation they are having NOB.  If we lived up there still, we would have gotten blasted by heating costs this winter and continually the near tripling of gasoline costs since we used far more of both there than we do here.

One cannot simply look at this from a purely local perspective and ignore the near total interconnection of Chapala with the global economy.  These problems have roots in megatrends and policy errors all over that go back for a number of years.   

An example of a key megatrend player in current events is having vital goods and medicines manufactured on the other side of the planet from where the primary markets are with resulting dependence on long, vulnerable and costly supply chains.

How much better off would everyone in this hemisphere be if all that production that went to India and China went to Mexico, Central and South America instead?

The problems were exacerbated IMO by a severely damaging mishandling of covid and wanton money printing in key countries that also goes back quite a long way.  Think of it as a toxic combination of older chickens coming home to roost with a rash of seriously stupid policy errors in a number of key places piling on.  

Regardless of any partisan labels, I believe the latter is the result of a political, economic and "educational" elite that is so disconnected from reality and the rest of us they are doomed to make gross mistakes and drag the rest of us along from one disaster after another quite unwillingly. 

The ruling class and their billionaire sponsors have become a liability for everyone including themselves.  And for the most part, none of them have a clue why this is so.

That's a bargain, I'll take it.  But is that in Pesos?  :D 

Mainecoons--it's time to get rid of cash to fight inflation and buy hard assets--I just put a deposit down  on a new condominium  here in PV- "Penthouse on the eight floor"- I bought it at presale for 600,000.00 dollars-It won't be completed until four years from now; and the value is estimated to be 1.2 million on completion-- that's how one fights inflation-- you have to buckle up and ride the wave---HA

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