Mexico City.- For the high-income population, Mexico City (CDMX) is more expensive than other capitals such as Tokyo, in Japan, and Vancouver, in Canada, according to the Global Wealth and Lifestyle Report 2024 by Julius Baer.
And the appreciation of the Mexican peso is the reason why the Mexican capital became one of the most expensive cities in the world.
In Julius Baer’s global Lifestyle Index, based on a basket of luxury goods and services most representative of the population with high purchasing power, the Mexican capital made a significant jump, going from 21st place out of 25 places to ranked number 16 out of 25 in a single year.
Thus, CDMX climbed five places on the list of the most expensive capitals and was above other cities such as Bangkok in Thailand, Barcelona in Spain, Frankfurt in Germany, Manila in the Philippines and Tokyo in Japan, to name a few examples.
“Mexico became five places more expensive, it became more expensive and this as an effect of the exchange rate. Tokyo is the 23rd city out of 25, that is, Mexico City, in this sample, is much more expensive than Tokyo due to the mix of price of products and services and the effect that the exchange rate had.
“The Mexican peso, which is so strong in the cost of this basket that is calculated in dollars, made Mexico more expensive than Tokyo, more expensive than Bangkok. It does highlight how Mexico became more expensive due to the effect of the exchange rate, it is the first time that (CDMX) has such a strong escalation,” highlighted the manager.
The study was carried out between November 2023 and March 2024, and in this period alone the Mexican peso appreciated 8 percent.
In the basket of luxury products and services considered in the Julius Baer exhibition are cars, jewelry, watches, women’s bags and footwear, men’s suits, residential properties, technology, beverages such as whiskey and champagne, private schools, business air transportation class, as well as restaurants with three Michelin stars, among others.
The high-income segment of the population includes business owners and their families, businessmen and women, entrepreneurs and employees or executives with high salary levels, explained in an interview Esteban Polidura, director of investment strategy for the Americas at the Swiss bank Julius Baer.
“This movement makes you understand how the basket of the most representative products and services of this segment became more expensive in this period, but from the beginning of 2023 until before the elections, the Mexican peso appreciated 15 percent.
“So in Mexico there was a very strong appreciation of the exchange rate because Mexico has had very high rates, compared to the inflation it is experiencing,” he highlighted.
When the Mexican peso becomes more expensive, the basket of this consumer segment also rises.
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