Costa Rica Ranks High for Cost of Living
Costa Rica News – It seems the US dollar does not stretch as far anymore in the land of Pura Vida. Costa Rica is one of the most expensive countries to live in throughout Latin America, and the single most expensive in Central America. I would argue that the natural beauty and the beauty of the people make it worth the extra cost of living.
There is something called The Big Mac Index, published by The Economist, which took it’s name from the McDonald’s specialty. It’s a way to measure the purchasing power between currencies. It betters the exchange-rate theory by testing the exchange rates on goods costing the same in different countries. This index lists Venezuela, Brazil, Uruguay, Costa Rica, and Chile as the most expensive in Latin America.
The first most expensive is Venezuela, with a consumer price index (CPI) of 103.49. It has the highest inflation rate of these countries. In 2011 the inflation rate reached 28%, lowering the value of money.
Brazil’s CPI is 83.71. Two of Brazil’s cities, Sao Paulo and Rio de Janeiro, are in the top 20 most expensive worldwide cities!
Uruguay, with a CPI of 82.95, has such a high cost of living because of its large size and inefficient expenses.
Chile has one of the best overall economies in Latin America, yet it’s expensive to live in. The costs of housing, food, and education are extremely high. The CPI is 67.39.
Costa Rica has a CPI of 68.43 and seems perfect aside from the costs. Though the cost for housing and food is high, education is inexpensive.
The high salaries, low crime, governmental stability, and neutral political status make Costa Rica an ideal choice, even with the high cost of living.
By Kerry La