Cost of Living In Costa Rica. Food and gas prices.

A gentleman from California and I had long conversation yesterday about the cost of living in Costa Rica. Jimmy is careful with his money and although he seemed to be obsessed with the prices of various food items in Costa Rica, he knew little about the prices of anything in California, telling me that his wife “takes care of that at home…”

Well I don’t like to upset anyone but we know food prices have increased quite significantly in the US too, right? And in the UK?

According to the 22nd April 2010 National Inflation Association article entitled U.S. Food Inflation Spiraling Out of Control: “Some of the startling food price increases on a year-over-year basis include, fresh and dry vegetables up 56.1%, fresh fruits and melons up 28.8%, eggs for fresh use up 33.6%, pork up 19.1%, beef and veal up 10.7% and dairy products up 9.7%.”

What about the cost of living in my birthplace, the UK? “Food prices are accelerating at their fastest rate since records began…” “The increase – the highest since the Office for National Statistics (ONC) began keeping records in 1992 – has driven the cost of a consumer’s average basket of groceries up by 12 per cent in a year.”

Philip Hammond, the shadow chief secretary to the Treasury said that: “We now have falling real take-home pay, soaring food and fuel costs and rising commodity prices, which are made worse by the slide in the value of the pound. This is more bad news for ordinary families, who will find it harder than ever to make ends meet.”

Doesn’t that sounds like a great combo?

Getting back to Jimmy’s home state of California, Attorney General Jerry Brown told a group of young Democrats earlier this month that: “California is deeply in debt. You could say that it’s bankrupt.” With California’s $18.6 billion budget deficit do we really believe that taxes in California are not going to go higher?

In April 2010 White House adviser Paul Volcker said the value-added tax “was not as toxic an idea” as it has been in the past and that: “If at the end of the day we need to raise taxes, we should raise taxes…” And with 46 states with high budget deficits it’s just about impossible to escape the financial crisis in the USA or the fact that you will be asked to pay more taxes in the USA in the future unless of course you left the country…

Hmmm! There’s an idea!

Maybe you could retire to some exotic, more affordable country where there are lower taxes and Spring like weather all year round?

But wait a minute! You say, what about the cost of food living in Costa Rica?

Thanks to huge drops in the prices of potatoes, yuca, beans and a few other items, the price of the average basic “food basket” or canasta básica in Costa Rica actually dropped for the first time in 14 years. (The canasta básica is used by the Ministerio de Economía, Industria y Comercio (MEIC) to compare consumer prices from year to year, it consists of 45 items including rice, beans, sugar, coffee, corn & wheat flour, bread, cheese, milk, toilet paper, tuna, sardines, pork, eggs, beef, sausage, and more.

What about gas prices in Costa Rica?

As of the end of April 2010, the price of one litre of “Regular” gasoline in Costa Rica cost 587 and “Super” is 618 colones.

“Regular” gasoline at 587 per litre = 2,222.036 colones per gallon which at 530 colones per US$1 means that one US gallon of “Regular” in Costa Rica = US$4.19 which is 44% more expensive than the US$2.896 “Regular” in the USA.

“Super” at 618 colones per litre = 2,339.38 colones per gallon which at 530 colones per US$1 means that one US gallon of “Super” in Costa Rica = US$4.41 which is 38% more expensive than the US$3.186 “Super” in the USA.

Most Americans don’t quite appreciate the fact that they pay so little for their gas compared to most other countries…

Steve Donziger, a New York lawyer who has devoted more than a decade to fighting a massive legal case against Chevron, says that: “And most of the consumers in the United States have no idea. They are oblivious to the true price of the oil they consume. And Big Oil wants to keep it that way.”

In the UK: “Petrol prices have reached a new record high, having broken the previous record of 119.7p a litre set in July 2008.” That means that one US gallon (please see note below) would cost you the equivalent of 119.7 X 3.7854118 litres = 453.11p which works out to be US$6.76 per gallon which according to FuelGuageReport.com is more than double what is paid for premium gas (US$3.186) in the USA.

So food prices have gone higher in most places around the world, and by the looks of things, prices will go a lot higher in the future however, economic activity in Costa Rica was up 6.3% for the most recent quarter with 26,000 new jobs created in comparison with the previous year’s first quarter, the climate is perfect and the sun still shines every day…

We don’t need heating or air conditioning which saves us a small fortune each year and, the property taxes on my home in the mountains are less than $100 per year.

Life is sweet!

Come on down!

Please note that: One UK gallon = 4.54609188 litres while one USA gallon = 3.7854118 litres

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Written by Scott Oliver, author of 1. Costa Rica Real Estate Scams & How To Avoid Them, 2. How To Buy Costa Rica Real Estate Without Losing Your Camisa, 3. Costa Rica’s Guide To Making Money Offshore and the Director/Producer of the Costa Rica Living & Retirement – Secrets To Happiness DVDs.

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Andrew Makarik

to@welovecostarica.com

Andrew Makarik is the main editor of WeLoveCostaRica, a fan of this sunny country. He is also a loving husband and a has a lovely daughter. By being a devoted family man and the biggest Costa Rica fan, he wants to make more people feel at home there. WeLoveCostaRica unites people and helps them find new home or a new travel destination. This website is a friendly community where everyone can find not only information, but also new friends and travel pals. Andrew is also passionate about IT and programming, so he himself maintains a friendly atmosphere in this cozy environment of WeLoveCostaRica.com.