8 May 2008 No Comment

Increasing living costs are not just affecting American families, Mexico’s economy has seen its consumer prices rise .23 percent in April and 4.55 percent from a year earlier according to Mexico’s central bank website, the highest increase since May 2005.

In comparison to the financial crisis in 1994, that caused Mexico’s annual inflation rate to skyrocket to over 60% (1), even 4.55% is relatively good. In 2005, Mexico’s annual inflation reached a record low of under 4% (2).

It’s not surprising that inflation should increase due to factors like $120 barrels of oil, however buying real estate in Mexico is still attractive and the general consensus is that the housing market remains unscathed from the mortgage crisis north of its border.