🇲🇽 Living in Mexico: Why the RFC Matters, Rising Inflation, and Top Money-Savers - January 25, 2026

Living in Mexico - Weekly Update

Why the RFC Matters for Everything in Mexico

The RFC is more than a tax ID. It's a basic requirement for many services. You'll need it to open certain bank accounts, sign up for utilities, register for internet, and complete online forms. Without it, everyday tasks take longer and some services stay off-limits. Getting your RFC after receiving residency sets you up for smoother long-term living. Once it's in place, many parts of Mexico's digital and financial systems become much easier to navigate.

MEXICO WEEKLY ROUNDUP

Mexico News 

MEXICO INFLATION ACCELERATES IN JANUARY 

Mexico's inflation rose to 3.77% in January 2026, driven by higher prices for cigarettes, sugary drinks, and other consumer goods. Core inflation climbed to about 4.47%, the highest for early January in over a decade.

Why it matters: 

This signals persistent price pressure in Mexico's economy, which can affect costs for consumers and influence interest rate decisions. Higher inflation can shrink buying power and impact household budgets.

Source: El País

MEXICO SEEKS APOLOGIES FOR CONQUEST ATROCITIES 

President Claudia Sheinbaum reiterated that Mexico will continue seeking a formal apology from Spain for historical injustices inflicted on Indigenous peoples during the Spanish Conquest. She noted that this remains a symbolic priority for reconciliation and historic justice.

Source: El País

Foreign News About Mexico 

MEXICO WEIGHS HALTING OIL SHIPMENTS TO CUBA 

Mexican officials are reviewing whether to halt oil shipments to Cuba amid concerns the support could trigger retaliation from the United States. This highlights growing friction between Mexico's independent foreign policy and U.S. regional priorities.

Source: Reuters

NEARSHORING BOOM STRAINS MEXICO'S INFRASTRUCTURE AND WATER SUPPLY 

Mexico's nearshoring surge is straining electricity grids and water resources, particularly in industrial regions. Bottlenecks could limit Mexico's ability to capitalize on the manufacturing shift away from Asia.

Why it matters: 

Infrastructure and water shortages can affect housing, utilities, and quality of life. For expats, this helps explain why some fast-growing regions face rising costs and service disruptions.

Source: Financial Times

Peso Watch (as of Friday 12pm)

• USD MXN: 17.47

• CAD MXN: 12.66

• EUR MXN: 20.51

Explore Mexico: COASTAL SERIES - Puerto Morelos, Quintana Roo

Puerto Morelos is quiet, calm, and Caribbean. It sits between Cancún and Playa del Carmen yet keeps a small-town feel with reef access and slow living.

• Pueblo Mágico: Yes

• Food: Caribbean seafood, tikin-xic, ceviches, coastal Yucatán flavors.

• Culture: Fishing traditions and close-knit community.

• Nature: Mangroves, calm waters, barrier reef.

• Known for: Snorkeling and peaceful beaches.

• Cost of Living: Medium-high. Cheaper than Cancún/Playa but still tourist-influenced.

  
  

  Link: mexicancaribbean

  
  

MX Food of the Week Ensenada-Style Shrimp Tacos Recipe 

Ensenada-style battered shrimp tacos are a true gem of Mexico's coastal cuisine. Their light, crispy batter on the outside and tender, juicy shrimp on the inside create a unique flavor experience. Every bite delivers fresh, bright seafood flavor, making this recipe perfect for casual meals or celebrations.

Recipe Link: recetasgratis.net

Quick Insight

Gas delivery trucks take WhatsApp orders — Add your street's provider to contacts.

What's Happening in Mexico This Week

January 26 — Día del Chef en México 

A day to celebrate chefs and Mexican cuisine. Many restaurants and culinary schools highlight special dishes.

Fun Fact / Mexican Phrase

The Aztecs used cacao beans as currency for trade.

Mexican Phrase: ¿Cómo cree? Means "No way!" or "You're kidding!"

Community Tip of the Week

Here's what our IMWG Facebook community shared this week — 6K+ views, 136 comments (and counting):

"What's the biggest money-saver you've found since living in Mexico?"

Top 5 Tips (Summarized):

1. Property taxes are dramatically lower: Owning a home in Mexico is not heavily penalized, and annual property taxes are a fraction of U.S. and Canada costs.

2. Not owning a car saves a huge amount: Public transit, buses, combis, Uber, and walking replace car payments, insurance, gas, and maintenance.

3. Rent and utilities are far cheaper in many areas: Especially outside tourist zones and coastal resorts, costs for electricity, water, and internet drop significantly.

4. Daily food costs drop when you live like locals: Shopping at mercados, tianguis, and carnicerías is cheaper and often offers better quality.

5. Healthcare and insurance costs are massively reduced: Doctor visits, prescriptions, and full insurance plans cost a small fraction of North American prices.

See the full post + comments: IMWG Facebook Group post

MX QUIZ OF THE WEEK

Which ancient civilization built Chichén Itzá?

Quiz Answer: The Maya.