Mexico City: One of the most expensive cities to live in

According to the 2024 Cost of Living City Ranking by the labor analysis firm Mercer, Mexico City (CDMX) has the second-highest cost of living in Latin America, only behind Nassau, the capital of the Bahamas.

Globally, Mexico City ranks 33rd among the most expensive cities in the world, and second place when the study is limited to Latin America.

According to the firm, the capital was ranked 79th last year, making its new position in the ranking indicative of a significant increase in the cost of living over the past year.

Monterrey, in Nuevo León, is the other Mexican city included in the ranking, although the Sultana del Norte is placed at a distant 115th globally and 10th in Latin America.

Inflation, Relocation, and Nearshoring

Mercer's ranking is considered one of the primary guides in economic terms and is mainly used by multinational companies to plan new investment destinations.

Experts attribute the increase in the cost of living in CDMX to the appreciation of the peso against the dollar, inflation, and even the relocation of workers due to nearshoring.

Switzerland Dominates the Ranking of Expensive Cities

Although Hong Kong is the most expensive city in the world and Singapore ranks second, according to Mercer's analysis, three Swiss cities are among the top five most costly globally: Geneva, Basel, and Zurich.

The company explains that this may be due to the high quality of life offered by Swiss cities, the hyper-stable currency, and the country's overall tranquility.

In the Latin American context, the top 5 most expensive cities in the region, led by Nassau in the Bahamas and Mexico City, are rounded out by San José in Costa Rica, Montevideo in Uruguay, and São Paulo in Brazil