Inflation forces Californians to shop in Mexico

Residents of Southern California crossed the border into Mexico to shop as record inflation levels weighed heavily on Americans’ budgets.

David McCarty, a resident of Chula Vista, which is just south of San Diego, regularly makes the 20-minute drive to the US-Mexico border crossing at San Ysidro.

McCarty and his wife, Maria, park their cars and cross the international border to nearby Tijuana, where they buy their produce, munch on delicious street tacos and take their pet to the vet.

“If you’re on a budget, you need to take care of yourself,” McCarty told NewsNation.

Inflation rose to 8.5% in July, which is close to record levels not seen in 40 years. Food costs posted their biggest 12-month increase since 1979, while housing costs also rose 0.5% month-over-month and 5.7% year-over-year. ‘other.

Overall, prices remained stable compared to June.

Residents of Tijuana said they have noticed an increase in the number of Americans entering their city to shop.

Store owners in Tijuana said there had been a 20-30% increase in the number of American tourists during normal weekdays.

Store owners in Tijuana, Mexico are reporting an increase in the number of American tourists visiting in recent months.
Getty Images

Southern Californians are drawn to Tijuana because of their cheaper products. A gallon of milk can be had in Tijuana for 50% less than in the United States, while a four-pack of toilet paper costs about $4 less.

Some Californians travel to the border from greater distances. Gibran Jimenez told NewsNation that he, his pregnant wife and their two children got into their car and drove nearly two hours to get to Tijuana.

With another baby due next month, Jimenez said he couldn’t afford to spend beyond his means.

“I have to save as much as I can; every penny counts,” Jimenez said.

Americans pay 50% less for milk in Tijuana than at stores near them.
Americans pay 50% less for milk in Tijuana than at stores near them.
AFP via Getty Images

As food has become considerably more expensive, petrol prices have fallen in recent weeks – although they are still significantly higher than a year ago.

California is home to some of the highest gas prices in the country. According to the latest numbers from AAA, a gallon of regular unleaded fuel in California costs an average of $5.38.

“Gas prices are going up like crazy and that’s what’s killing us, you know, the middle class,” Jimenez said.

Food prices, which have already reached their highest level in decades, are expected to become even more expensive in the coming weeks.

It only takes 20 minutes to drive to the San Ysidro border crossing from San Diego.
It only takes 20 minutes to drive to the San Ysidro border crossing from San Diego.
Los Angeles Times via Getty Images

The price paid to U.S. producers for finished consumer foods jumped 15.8% in July from a year ago, according to Bureau of Labor Statistics data released Thursday.

The cost of eggs jumped more than 44% from June to July, while beef and veal prices jumped nearly 10%.

Higher producer prices suggest U.S. shoppers will soon face higher costs in the grocery store checkout aisle.

New York Post

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