If you’re considering moving to Peru, one of the most important factors to consider is the cost of living. In this article, we’ll take a look at the local currency, compare the cost of living in Peru to the UK and the USA, break down costs for singles, couples, and families of 4 in different categories, and explain the most common forms of payment in Peru.
Local Currency in Peru
The local currency in Peru is the Peruvian sol (PEN). One sol is divided into 100 centsimos. The Peruvian sol is not widely accepted outside of Peru, so it’s best to exchange your currency when you arrive.
Cost of Living in Peru Compared to the UK and USA
According to the Numbeo cost of living index, the cost of living in Peru is generally lower than in the UK and the USA. The index takes into account factors such as housing, food, utilities, transportation, and entertainment.
As of February 2023, the index shows that the cost of living in Lima, the capital city of Peru, is about 63.19% lower than in London and 67.21% lower than in New York. The cost of living in other cities in Peru varies, but generally, the cost of living in Peru is lower than in the UK and the USA.
Breakdown of Costs in Peru
To give you an idea of what you can expect to pay for different expenses in Peru, let’s break down costs for singles, couples, and families of 4 in different categories.
Housing
Housing is one of the biggest expenses in Peru, but it is relatively affordable compared to other countries. The cost of housing varies depending on where you live and the type of housing you choose. According to Numbeo, the average cost of a one-bedroom apartment in the city center is PEN 1,450 per month. A three-bedroom apartment in the city center costs around PEN 2,500 per month.
If you’re on a tight budget, you may be able to find a room to rent for around PEN 700 per month. However, keep in mind that housing in Peru can be challenging to find, especially if you’re looking for a specific type of accommodation.
Food
The cost of food in Peru is generally lower than in the UK and the USA. You can expect to pay around PEN 10-15 for a meal at an inexpensive restaurant and around PEN 30-40 for a meal at a mid-range restaurant.
If you’re on a tight budget, you can save money by shopping at markets and cooking your meals. A week’s worth of groceries for one person costs around PEN 60-80.
Utilities
The cost of utilities in Peru varies depending on the size of your home and your usage. On average, you can expect to pay around PEN 200-300 per month for utilities such as electricity, water, and gas.
Leisure
The cost of leisure activities in Peru varies widely depending on what you enjoy doing. A movie ticket costs around PEN 20, and a fitness club membership costs around PEN 150-200 per month.
If you enjoy going out, expect to pay around PEN 10-15 for a beer in a bar or around PEN 25-40 for a cocktail. Entrance fees for museums and other attractions vary widely but usually range from PEN 15-30.
Transport
The cost of transport in Peru is relatively low, and the country has an efficient public transportation system. A one-way ticket on public transport in Lima costs PEN 2.50, and a monthly pass costs PEN 60.
If you prefer to drive, you can expect to pay around PEN 4.50 per liter of gasoline. Car insurance is also relatively affordable, with an average cost of around PEN 500-700 per year.
Clothing
The cost of clothing in Peru is generally lower than in the UK and the USA. The prices of clothing items depend on the brand and quality of the product. If you’re looking to buy new clothes on a budget, there are several affordable chain stores that offer reasonably priced clothing.
For example, H&M and Zara are popular stores where you can find fashionable clothes at an affordable price. A pair of jeans can cost around PEN 60-80, while a shirt can cost around PEN 40-60.
Household Goods
The cost of household goods in Peru varies depending on the item and brand. For example, a new television can cost anywhere from PEN 1,500 to PEN 4,000 depending on the size and features. A washing machine can cost around PEN 1,500-3,000, while a refrigerator can cost around PEN 2,000-4,000.
If you’re on a tight budget, you may be able to find used household goods on websites such as OLX, the Peruvian version of Craigslist. Many people sell their used items at a fraction of the cost of new items.
Forms of Payment in Peru
The most common forms of payment in Peru are cash and credit cards. Most stores and restaurants accept credit cards, especially in larger cities like Lima.
Contactless payments and mobile payments are becoming more popular in Peru, but they are not yet widely available. Some banks offer mobile payment services, but these services are not yet widely used.
In addition to cash and credit cards, some stores in Peru accept payment through popular mobile apps like Yape and Bim.
The cost of living in Peru is generally lower than in the UK and the USA. Housing, food, and leisure activities tend to be more affordable in Peru, while transportation and clothing are comparable in price.
When it comes to payment methods, Peru primarily relies on cash and credit cards, but mobile payment services are becoming more popular.
Before you move to Peru, it’s essential to research the cost of living in your desired location and create a budget that takes into account your income and expenses. By doing so, you can ensure that you can live comfortably in Peru without breaking the bank.