What is the cost of living in mexico?

Large cities, touristy cities usually cost more. . I can tell you what things cost in Veracruz. Rent is 1/3 to 1/2 what it is in the U.S. A nice 3 bedroom house rents for about $400 a month. Utilities are far cheaper...electric is about $50.00 for 2 months, Water is about $50.00 for a year. Gas for the house is $10 or $15 a month. All services, like plumbers, electricians, mechanics are about1/3 the cost in the U.S. Groceries are about the same, except for fruits and veggies which are far less. Gasoline has recently gone up to $3.50 a gallon...was $2.40 when I came here 6 years ago. A single person can live on about $1500 a month easily...maybe less...but to get a visa, you are required to have a minimum of about $1500 a month steady income. Health care is far cheaper.

Charlie, as always, has an excellent answer. His costs are spot on. I'll just add that my wife and I live in Guadalajara and we spend about $4000 US a month. But, we live really well. We drive a 2011 car, get it washed 2-3 times a week. Live in a high rise with private security. Eat out every day, etc. We could easily get by on 1/2 or 1/3 what we spend. The thing is, that in Mexico, like everywhere, you can live on different amounts, depending on your particular lifestyle and circumstances. In our neighborhood, there is a small store that sells imported us snack foods. It costs 3 times the price from back home. But, by no means, does one 'need' to lay out this expense. Overall, you can live a very nice quality of life, and will generally spend less for it. Hope this helps.

The sky is the limit. I live near Mexico City and it costs me $40,000 USD a year.