It may never be a greater bargain. The peso has fallen 9.5 percent since May 3, and with potential turmoil in Europe and elections at home it could fall further. The rate today is about 14.2 pesos to the U.S. dollar, although my bank only gives 13.8 pesos. 

Mexico has never been an expensive country. But with this exchange rate, tourists who stay away from package trips get a notable premium. Backpackers and budget travelers will definitely notice the difference.

In my two years or so in Mexico, the rate has largely been in a band roughly of 11.5-13 peso to the dollar.

Why the peso has fallen so is the subject of some speculation although the link to the European financial crisis is without doubt. A few voices cite a connection to domestic politics, particularly the rise of the leftist presidential candidate Andres Manuel Lopez Obrador in the polls for July 1 elections. Most polls show Lopez Obrador still trailing the PRI candidate but if the vote results are tight that could rock the exchange rate as well.