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Peru's capital is the 4th more expensive city in the region

LivinginPeru.com
Isabel Guerra

Lima is in the fourth place of the Most Expensive Cities in Latin America Ranking, elaborated by the UBS Bank (Switzerland).

The study for this ranking analyzes the costs and rates of 122 goods and services, and puts Caracas in the first place, as the most expensive city, followed by Sao Paulo and Rio de Janeiro.

Lima, in the fourth place, is followed by Buenos Aires, Santiago, Bogotá and Mexico city.

However, according to this study, Lima is the best city to rent cheap, while Caracas has the most expensive rentals in the region: US$ 2.080 al mes, 16 times more expensive than in Lima.

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# mathmajor says :
27 August, 2009 [ 10:30 ]

16 times more expensive than Lima.  Is that saying that the average rent in Lima is $130 a month?  (130 X 16)  I'm not real bright, but there is no way that they can say that is the average rent in LIma.  (If you are talking about nice housing.) 

# jb says :
27 August, 2009 [ 16:25 ]

I was in Caracas 6 weeks ago and I can attest to the ridiculous costs - although I didn't see 16x.  Chavez has artificially pegged the Bolivar at 2.1 to the US$.  The black market is trading the Bolivar at 7:1.  This means that everything you buy (goods or services) and pay for in US$ (not Bolivars) costs 3.3x what it should.  I had a quarter pounder, fries and a coke at McDonalds --- US$23.  The taxi from the airport to Caracas was US$110.  And this is where a gallon of gas costs .11 cents (US$).  And what's more the Venezuelan Aduanas tried to shake me down for $4K upon entry -- corrupt b**tards.

# Micah Cantley says :
27 August, 2009 [ 16:50 ]

The original article does not say the "average" rental price in Caracas is $2,080, it says this is the price for a rental of normal size.  However, the article does state that this amount is 16x's that of a rental with similar characteristics.  I am most certain that is not the case, though I have no doubt Venezuelan prices are not reflective at all of the world market but rather of Hugo's market. 

# Rene says :
27 August, 2009 [ 19:51 ]

And on top of that it is completely pointless to convert all prices of a country to US$ and then bluntly compare them. What about the incomes in the various cities? Only if you express e.g. the cost of housing as a percentage of the take home income, then there is something to compare.

This report is only valid for US expats who will travel for their work to those cities, but remain being paid their American income in US$.

# Last time... says :
27 August, 2009 [ 22:28 ]

Past time I checked many people in peru are payed in US dollars, especially in lima.

# jb says :
28 August, 2009 [ 05:14 ]

Rene, you are partially correct.  In the case of Venezuela, the report is valid for anyone other than those who live in VE.  Why?  Because everyone, not just US expats, has to change their currency into local money.  Venezuela imposes artificial monetary controls that make it expensive for all visitors.  What's more is that in VE, you can only change your money "one-way".  When you depart, there is no changing back to dollars, euros or any other currency.  Hugo wins.

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