increasing cost of living

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bettentfiet
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increasing cost of living

Postby bettentfiet » Mon Aug 15, 2016 1:28 pm

Cost of living in Peru has been increasing over last few years.

Peru is no longer a cheap hideaway.

Is anyone affected by those price rises struggling or even thinking of packing up to a country with more value for money.

I've been doing some research and found out that some several of countries that are inexpensive, nice and safe to live aren't as we might think in South America or Asia but in Europe.

Spain, Portugal, Greece, Romania, Bulgaria, Latvia, Slovenia, Slovakia, Hungary, Poland all have a low cost of living and are safe and have a lot to offer.
The advantage is that you don't need a work permit or visa and can stay in those countries for as long as you want. You can even avail of their welfare system if you fall on hard times.


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caliguy
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Re: increasing cost of living

Postby caliguy » Mon Aug 15, 2016 1:38 pm

i'm sure all of us who have been here for any length of time have seen prices continually creep up. and on top of that, most items are sold in small packages, so you're always running to the store to buy another small package of the same product. although it doesn't affect me financially, it just something i observed over the years.
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gringolandia
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Re: increasing cost of living

Postby gringolandia » Mon Aug 15, 2016 2:53 pm

It might be good to specify which part of Peru you're talking about.

Lima is no longer cheap at all, but Arequipa isn't too bad. And it has a nicer climate and is safer and cleaner. When we recently visited there my daughter said she wanted to move there... but we're pretty well locked into Lima at this point.
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Re: increasing cost of living

Postby woodchuck » Mon Aug 15, 2016 3:11 pm

Spain, Portugal, Greece, Romania, Bulgaria, Latvia, Slovenia, Slovakia, Hungary, Poland all have a low cost of living and are safe and have a lot to offer.

Which of these countries speak the most English?
I consider myself intelligent, but have so much difficulty learning Spanish.
I know Spain, Portugal, Greece have beautiful weather, what about the others?

I have read where welfare benefits have been drastically reduced in Europe, any links that would suggest otherwise? Thanks. :roll:
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SilverbackPeru
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Re: increasing cost of living

Postby SilverbackPeru » Mon Aug 15, 2016 4:39 pm

Yeah the cost of living has been the topic of conversation on here a few times but i think the arguments been over a long time ago. Lima especially is a difficult place to live. it's ok if you are on a nice big retirement income but my quality of life has definitely been a lot poorer. It's a shame because i do think the average Peruvian is being ripped off.

If you are looking at moving abroad i would probably look a the south of Spain. This tends to be very popular with Brits and there will be large English speaking expat areas to be found as well as cheap property after the economic collapse back in 2008 i would imagine. Austerity has been taken by a number of European countries but you can still do private health care as an option.

Check up on the national health care as well. You can do national health care for the most part but if you end up on a waiting list then you can simily pay for private tests. Once you have your test results from a private clinic you jump to the front of the queue for treatment.
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Re: increasing cost of livin

Postby 19naia » Tue Aug 30, 2016 9:48 am

It can't be that bad considering how cheap it was 2014. Lima was always more expensive in the more developed areas but thats true for any country's commercial capital.
Has the $2 menu gone up to $3 now? Or is it closer to $5 now?
The US dollar is up and the British Pound has been down. Is it the British expats saying its expensive now or is it all around more expensive?
I was in Trujillo area back in 2013-2014 with $2 menus or $5 menu at some restaurants in the resort areas.
Stayed in a decent hotel for under $250 a month. Found the same in Ecuador.
Even if its up an extra dollar for food at restaurants and up to $300 for the same hotel, its not so bad except maybe for the average local family. I see the exchnage rate is up in favor of the dollar, so maybe prices are following that.

I may be coming back to Peru and Ecuador possibly next year or the year after, i have several destinations on the list and not sure what order they will go over the next 2 years of 1 or possibly 2 destinations a year.
Anyway, i gave up on the expat dream and rather just travel every year to a destination for the winter half of the year and do the summer half of the year in the US. As soon as i got back from Peru in 2014, i knew i was done with the expat dream and decided to dig in and invest at home in US here and business has been good so far while i am still free to travel half the year and still grow income wise and savings towards being able to afford extended modest stays in any country. I will probably keep up the travel pattern of half in the US and half in other places. This year i am staying in the US for the winter but heading way south where its warm.
I was in Africa last winter and did 5 countries while there, and they are all having price increases since then ,but the exchange rates for the $ have also increased to favor the dollar. I was in Central America in 2012-2013 and i see the exchange rate there has also gone up since, and I bet prices have too. It comes close to balancing out in most cases. One country in Africa where i stayed, has seen the dollar go up so high that it by far outpaces local goods inflation, so even though its more expensive there for locals, the dollar gets over 50% more in local currency than when i was there. it went from $1 to 2 all the way to $1 to 3.45 but fluctuates between 3.1 and 3.45 in any day. The place was always overpriced before, so this was bound to happen after the inevitable economy collapse.
Then there is the Expat effect that causes inflation just because most Expats pay more and charge a higher premium for their property investments and other businesses. They create a trend that drives the prices up in their sector of the market and slowly it seeps into the rest of the economy and it ends up bad for locals in various other niches of the economy. Panama is a good example of this and being that they use the US dollar as their currency, they don't have a local currency to adjust for offsetting. When local wages don't keep up, things get bad for every one. Crimes targeting expats increase and so on. Its old news that Panama and Costa-rica prices are way up -its almost easier now to stay in the US unless you like a simple rustic small town living or a jungle lifestyle. Its easy to live in a small town in USA with $800-$1200 a month and have a better overall safety net and state of surroundings and ammenities. Some Americans in small towns live off of less than $800 a month and usually share with a family member. Welfare benefits and charity organizations help them in most cases. Safety nets.

I will keep up on things to see what to expect whenever i come that way again. It would be nice to see examples of pricings before and after when explaining how expensive things have gotten, otherwise i am left with imagining anything like arriving and falling into unexpected destitution or arriving and having to fork over more than i budgeted for.
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Re: increasing cost of living

Postby Polaron » Tue Aug 30, 2016 10:37 am

Officially for fiscal 2016 Cruze annualized inflation rate is around 3% according to the Instituto Nacional de Informatica y Estadisticas (INEI). The central bank has increased interest rates by .25%, and gross domestic product is reported to be growing at 3.7% per year. Those are good figures anywhere and outstanding for Latin America and the third world in general. However we need to remember that inflation is cumulative; it builds up your after year. So an article that cost 1 sol in 2009 for example costs about S/.1.25 now.


Having said that I will say that it seems to me that inflation has been a little higher than what the government reports. However I earn $10 so there are some months when the dollar declines and that you end up getting a double whammy of falling Dollar Value Plus local inflation. The dollar is still down almost 10% from its high-value back in January. I personally believe that the Peruvian currency is overvalued but that's only a personal belief. I have no empirical data to back that up.
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Re: increasing cost of livin

Postby bigdaddy » Tue Aug 30, 2016 11:56 am

19naia wrote:It can't be that bad considering how cheap it was 2014. Lima was always more expensive in the more developed areas but thats true for any country's commercial capital.
Has the $2 menu gone up to $3 now? Or is it closer to $5 now?
The US dollar is up and the British Pound has been down. Is it the British expats saying its expensive now or is it all around more expensive?
I was in Trujillo area back in 2013-2014 with $2 menus or $5 menu at some restaurants in the resort areas.
Stayed in a decent hotel for under $250 a month. Found the same in Ecuador.
Even if its up an extra dollar for food at restaurants and up to $300 for the same hotel, its not so bad except maybe for the average local family. I see the exchnage rate is up in favor of the dollar, so maybe prices are following that.

I may be coming back to Peru and Ecuador possibly next year or the year after, i have several destinations on the list and not sure what order they will go over the next 2 years of 1 or possibly 2 destinations a year.
Anyway, i gave up on the expat dream and rather just travel every year to a destination for the winter half of the year and do the summer half of the year in the US. As soon as i got back from Peru in 2014, i knew i was done with the expat dream and decided to dig in and invest at home in US here and business has been good so far while i am still free to travel half the year and still grow income wise and savings towards being able to afford extended modest stays in any country. I will probably keep up the travel pattern of half in the US and half in other places. This year i am staying in the US for the winter but heading way south where its warm.
I was in Africa last winter and did 5 countries while there, and they are all having price increases since then ,but the exchange rates for the $ have also increased to favor the dollar. I was in Central America in 2012-2013 and i see the exchange rate there has also gone up since, and I bet prices have too. It comes close to balancing out in most cases. One country in Africa where i stayed, has seen the dollar go up so high that it by far outpaces local goods inflation, so even though its more expensive there for locals, the dollar gets over 50% more in local currency than when i was there. it went from $1 to 2 all the way to $1 to 3.45 but fluctuates between 3.1 and 3.45 in any day. The place was always overpriced before, so this was bound to happen after the inevitable economy collapse.
Then there is the Expat effect that causes inflation just because most Expats pay more and charge a higher premium for their property investments and other businesses. They create a trend that drives the prices up in their sector of the market and slowly it seeps into the rest of the economy and it ends up bad for locals in various other niches of the economy. Panama is a good example of this and being that they use the US dollar as their currency, they don't have a local currency to adjust for offsetting. When local wages don't keep up, things get bad for every one. Crimes targeting expats increase and so on. Its old news that Panama and Costa-rica prices are way up -its almost easier now to stay in the US unless you like a simple rustic small town living or a jungle lifestyle. Its easy to live in a small town in USA with $800-$1200 a month and have a better overall safety net and state of surroundings and ammenities. Some Americans in small towns live off of less than $800 a month and usually share with a family member. Welfare benefits and charity organizations help them in most cases. Safety nets.

I will keep up on things to see what to expect whenever i come that way again. It would be nice to see examples of pricings before and after when explaining how expensive things have gotten, otherwise i am left with imagining anything like arriving and falling into unexpected destitution or arriving and having to fork over more than i budgeted for.



FWIW, I bought a pair of Dubros designer frames in 2009 for about 39 soles. Priced a pair last night and they were now 100 soles but it could be that it's become chic to wear glasses. A fashion statement if you will.
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