Job Discussion Forums

[Ben Round de Bloc]

Is it happening throughout the country or just here in Yucatan? Recently, bottled gas has gone from 167 pesos to over 207 pesos for a 30 liter tank. Since the first of the year, cost of electricity has doubled. Costs of things in the supermarket continue to increase little by little. City bus fares and taxi service are predicted to increase. A 20-minute taxi ride now costs at least 50 pesos and from the airport to my house (half hour) costs over 200 pesos. Where I teach, we're getting a 4% raise, which doesn't do a lot when costs of most things are increasing by much higher percentages. Although it's above average for EFL teachers' wages in this city, I'll only be earning 60 pesos/hour after the raise. Is this happening in other parts of the country, too?

[LM]

I am currently living in Canada, but I am going to ask my "suegros", who live in Toluca, about the price of gas and the taxi rides. I'll get back to you. I have been trying to keep up on the price of food, clothing etc, and I haven't seen increases that high.
About the salary, It must be hard to survive on so little. I made 60 pesos an hour 6 years ago and was offered 90 just before I left. I was teaching business English. I know that most people doing that same kind of work now are making between 100 and 150 depending on whether you are on your own, or you are working for a company who is taking their cut.

[Ben Round de Bloc]

LM, thanks for taking the time to reply.

I should have included that the 60 pesos/hour is after taxes. I get paid holidays except for summer break which lasts 4 to 5 weeks, an aguinaldo equal to almost a month's pay in December, medical insurance, and vales (coupons that can be used like cash in all major stores and supermarkets in the city) equal to 1,000 pesos per month. This is at a state university. In this city, language-school wages range between 35 and 80 pesos per hour (average 50 pesos per hour) before taxes with no extra benefits. With my MA in TESOL but no business background, I don't feel I'm qualified to teach business English classes, which do pay above average (maybe 80 pesos per hour,) but here almost all of those are contracted through language schools. The cost of adding another employer to my FM-2, travel expenses, and having to give up university teaching hours, which I enjoy very much, in order to have time to teach a few hours for a second employer wouldn't be worth it. I'm managing to survive on my wages with the help of a bit of supplementary income, but as I said, with costs of everything increasing at least locally, it's becoming tighter.

Again, thanks for responding. Am anxious to hear how it is in other parts of the country.

[LM]

I checked a couple of things out for you last night. My husband talks to his family in Toluca using NetMeeting. They said a 30 kilo (they assure me it is kilos and not litres) tank of gas (the one for cooking, heating water etc.) is 120 pesos. They get their tanks refilled, so I assume you are talking about a refill and not a brand new tank. A 20 minute taxi ride to the downtown is 30 pesos during the day, and 40 at night. A ride to the airport is not really comparable because we have to go from Toluca to Mexico city. We usually use an executive bus that goes straight to the airport.

They do say that prices are starting to rise, as they are everywhere in anticipation of a war in Iraq and the usual winter increases. If there is anything else you would like to know I will ask them for you. You can assume that the prices they give me are probably at par with the majority of cities in the central region. My suegros own a general store, so they know wholesale and retail prices for almost everything.

Good luck with everything in Merida. Maybe the higher cost of living is worth it, I hear it's beautiful there. Toluca is not very touristy, but the weather is still beautiful compared to Canada. Toluca has snow once every two years, and the daytime high is usually a comfortable 25 degrees. We will be moving back to Toluca this summer, so I will be keeping up with the posts here.

[MELEE]

We also got a measly 4% increase, when inflation last year was 5.7% Now, if you haven't already noticed, the peso is tumbling, it is expected to go over 11 by the end of the week (if not more)

[Guy Courchesne]

You really notice the inflation rate in Mexico. In Canada, you wouldn't really notice price creep, spaced out over years. In Mexico, I've seen most things go up in price about 20 percent in less than 3 years.

Some things go up in price as the peso weakens...but only imported good or services. Most of the inflation increases I've seen in Mexico came during 2001 and the front of 2002, when the peso was very strong, close to 9.3 to the dollar. Local services and goods made here like public transport, some staple foods, and things like plumbers, electricians' services all shot up about 20 percent, independent of the dollar rise. Value added tax was also applied to a few things extra.

I'm not an economist, but I think i can see now how countries reach points where there are 6 zeros on the end of any bill you have in your wallet...it just gets out of hand, year after year. I'd like to put some money into Mexican stocks and cetes, but the inflation rate wipes our gains super quick...

Economist Guy

[The Old Gringo]

Actually, is hasn't been so long since there were several more zeros attached to the peso!

[doreenp]

[quote="LMThey said a 30 kilo (they assure me it is kilos and not litres) tank of gas (the one for cooking, heating water etc.) is 120 pesos. They get their tanks refilled, so I assume you are talking about a refill and not a brand new tank.

Could this be explained a tad further? I'm hoping to move to Mexico in the near future and would like to know what to expect before renting an apartment/house.... what kind of 'gas' (propane?)are we talking about and how does it work? I'm aware that some places will be different from the others but could you explain in general what i might be up against. maybe what to look for and what to stay away from? It definitely sounds different from renting an apt. in Canada where heat,hydro, and cable are included in the rent !

thanks
dee

[LM]

The gas is a petroleum product that is sold in tanks. You will either have a large tank to get filled or smaller ones that you can exchange.

There is no indoor heat, though you can buy small heaters.

Definitely no cable included, and it depends where you live, but it might not be available.

Electricity is not usually included, but water usually is.

Unfurnished usually means no fridge or stove either.

All of this can vary of course.

[MELEE]

Going back to the original topic--cost of living increase, I just found out that my employer has already calculated ours for Jan. 04---a measly 5%.

This year in July the cost of the bus fare for me to get to work went up by 25%!!!!!