Costa Rica Cost of Living – Increases in basic food items not as substantial as last year. 7th August 2006

The prices of the basic foods grew this year, but not as much as last year.

1. In the first six months of 2006, prices rose by 11% in comparison with 2005
2. In the first six months of 2005, prices rose by 22% in comparison with 2004

The basic food basket is made up of the minimal amount of food that would give the average person the required amount of calories to survive. It is not the ideal diet, but a basic minimum diet.

The list of products included in the basket was chosen in 1995 on the basis of a national opinion poll – Encuesta nacional de ingresos y gastos de los hogares – National Survey of Home Income and Expenses done between 1987 and 1988, which investigated which products Costa Rican families were consuming.

Presently, the National Institute of Surveys and Census – Estadística’s and Censos’s Institute Nacional (INEC) – is working on the results of a new survey for 2004 and 2005.

How Much Does The Basic Food Basket Cost?

1. For June 2006 the cost of the food basket for one person was c19,765.50 or US$38.61 (At the end of June 2006 c511.93:US$1)
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2. This number means that an average family of 3.8 people in June 2006 would have paid c74,318* or US$145.17 for that month for basic foodstuffs. Homes with less that this amount in income would be considered extremely poor

Foods:

As you will see from the chart below, although the the cost of coffee hardly rose at all in the most recent year, coffee prices did rise dramatically between June 2004 and June 2005.

Prices of black beans and white cheese climbed substantially between June 2004 and June 2005 but hardly moved this year. Potato prices increased by 33% this year while prices for cassava, carrots, papaya and red beans fell.

Geovanni Masís, president of the Corporation Hortícola explained that good prices of cassava and carrots last year motivated many producers to plant more so that we now have an excess which has forced prices lower.

These decreases help relieve the financial situiation of the poorest families in Costa Rica who spend a larger percentage of their incomes to buy food.

Our thanks to Patricia Leitón and our friends at La Nación – Costa Rica’s largest Spanish circulation newspaper for their permission use this article.

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* – I have no idea why this number is c74,318 rather than c75,110.8 (c19,765.50 x 3.8 = c75,110.8) Scott Oliver.

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.