Cost of Living in Costa Rica
The cost of living in Costa Rica varies according to the type of lifestyle and priorities of each person. Expenses may be higher if you live in an urban area than if you live in a rural area, for example. However, although the standard of living in Costa Rica is higher than in other countries in the area, salaries may be lower than in other countries.
Cost of Living in Costa Rica
The cost of living in the country has risen steadily in recent years. The country’s inflation rate is 5.4%, which worries many locals. This increase in the cost of living has caused many to move from Costa Rica to other countries with a more affordable cost of living. This is because it is often difficult to find a balance between cost of living and quality of life.
Rather, Costa Rica is a developing country and as such, does not have the same economic stability as developed countries such as Canada or the United States.
Inflation Increase
Costa Rica has been experiencing an inflation rate of 2.7%, which is higher than the world average of 1%. The cost of living today includes rising food and fuel prices, as well as the costs of the country’s road network.
Therefore, the country is positioned as one of the countries with the highest cost of living in Central America. This is due to the high prices of products, services and properties. The high standard of living in the country compensates for these higher costs, but not always. Economic professionals in Costa Rica are urgently asking the government of Rodrigo Chaves for a very precise management of the monetary policy and to contain the cost of fuels, a consequence of the war in Ukraine.
The inter-annual variation of the consumer price index (CPI) reached 11.48% in July, according to the measurement made by the National Institute of Statistics and Census (INEC). With this result, inflation continues on the path of acceleration that began at the end of 2021.
Currently, the objective is to promote economic growth and generate more and better jobs, with proper management of public funds. This is due to the critical situation of thousands of Costa Rican households due to the rising cost of living.
An Increase in Poverty
The country has seen an increase in poverty levels due to the high cost of living and the lack of jobs for people.
The Colegio de Ciencias Económicas de Costa Rica forecasts that the country will close this year with a poverty level between 27% and 33% of the country’s households. This figure would represent a growth from the 23% reported by INEC in 2021.
While Costa Rica is one of the most expensive countries in Latin America, it is also one of the poorest. The country’s poverty rate is around 20%. This high cost of living is due to many factors, such as a low minimum wage, high unemployment rates and an unstable economy. In other words, 283,500 live in poverty, and if the cost of living continues to rise in the coming months, more families will be added to this condition.
In Summary
- Costa Rica has one of the highest costs of living in Central America. This is due to the high prices of goods, services and properties.
- Costa Rica has been experiencing an inflation rate of 2.7%, which is higher than the global average of 1%. The cost of living in Costa Rica today includes rising food and fuel prices, as well as the costs of the country’s road network.
- The country’s poverty rate is around 20%. This high cost of living is due to many factors, such as a low minimum wage, high unemployment rates and an unstable economy.
Author
Zelda Walters for Sensorial Sunsets
Bibliography
https://observador.cr/profesionales-en-economia-alertan-sobre-consecuencias-del-elevado-costo-de-la-vida-en-costa-rica/ https://www.nacion.com/el-pais/politica/chaves-sobre-aumentos-de-precios-es-un-fenomeno/QMC3BOC3MNCAREYJYO5ZLVMLEU/story/ https://delfino.cr/2022/08/colegio-de-ciencias-economicas-pronostica-aumento-en-la-pobreza-para-el-resto-del-ano https://www.ameliarueda.com/nota/presidente-chaves-dudas-pobreza-inflacion-noticias-costa-rica
Read About The Same Topic
Navigate articles
