Inflation Got You Down? Shop in Mexico, It’s Cheaper There

WASHINGTON, DC, Aug 22 — Joe Biden has done it again. He’s triggered a new Mexican border surge. This time, however, it’s not caravans of illegal immigrants trying to make their way into the U.S.; it’s law abiding Americans who are surging into Mexico to shop. 

The new inflation cycle that Biden triggered in the first year and a half of his presidency with no end in sight has U.S. citizens living near the border are doing their grocery shopping and gassing up their cars in Tijuana, just south of the California border. Prices are significantly lower in Mexico. You can save a buck on a gallon of gasoline and pay half price for a gallon of milk, for example. And, if it’s happening in southern California, it is likely happening, as well, in other border states such as Texas, New Mexico and Arizona.

The Consumer Price Index shows that “food-at-home prices leaped 12.2% over the last 12 months,” according to GroceryDive.com, which tracks trends shaping the grocery industry. The website quotes Neil Saunders, managing director of GlobalData Retail who notes that “Consumers can cope with both moderate price rises over a long period, and sharp price rises for very short durations. Managing hefty inflation over a sustained time frame – which is where we are now – is much more challenging. We are now at the point where consumers are starting to take more evasive action to reduce their expenses.”

At least one news outlet, OurPatriot.com suggests that some regular bargain shoppers may even be considering moving to Mexico for the benefits. The site says that gas prices are “around $1.24 lower than the California average of $5.38. That’s over a dollar saved on gas alone, whereas milk and other groceries make gasoline pale in comparison…milk in Mexico costs half as much as it does in California; other necessities like toilet paper and Tylenol will each save you up to $4 per smallest-size retail pack.”

The manager of the Mercado Hidalgo in Tijuana told the BorderReport.com that the American families that shop at his store tell him that they are saving lots of money, despite the drive. He says that he sees more Americans doing their shopping on weekends but that he’s noticed a 20 to 30 percent increase in U.S. shoppers Monday through Friday in recent weeks and months.

The Consumer Price Index shows that household food costs have soared 13%, year to year. That’s the biggest year-to-year increase in more than 40 years. Gas prices are up by some 45%. And in its most recent “inflation is not done yet” report, the fiscal experts at Kiplinger suggest we have a way to go before we see any real relief. “Prices continued to rise strongly for basics such as food, rent and new vehicles. There is some evidence that food prices may be moderating after a year’s worth of large monthly increases. But continuing large wage increases at many businesses are likely to keep upward pressure on most prices for some time to come. Expect price inflation at the end of the year to be around 8.0%, down a bit from the peak of 9.1% in June, but still high.” 

But fear not, President Biden and his big spender Democrats in Congress have managed to enact their Inflation Reduction Act. Won’t that bring down the prices of our necessities? Absolutely not, say the experts. In fact, the independent, nonprofit Tax Foundation says, “By reducing long-run economic growth, this bill may actually worsen inflation by constraining the productive capacity of the economy.”