Friday, June 25, 2010

The Cost of Living


For now I am only able to comment on the cost of some basic commodities in Quito. These prices may well not reflect those elsewhere. A basic (small) apartment in Quito itself costs $110-$120 per month. Going by bus to almost anywhere in Ecuador from Quito is $8 each way.

We have shopped at a supermarket called Supermaxi which was full of local people as opposed to tourists. Here are the prices of some of the things we bought.

spaghetti 67c
margarine $1.24
pot of baby food 72c
2l Coca Cola $1.28
sugar 79c
Ragu pasta sauce $4.53

You can see from these prices that the cost of food is not as cheap as you might expect. Without exception, every person I speak to as part of my research says the same thing...that since Ecuador took the dollar as its currency the price of food has almost doubled in price. I was given the specific example of the price of a pineapple, which went from 45c to $1 overnight. Not a single person has failed to mention the high cost of living here in comparison to the wages earned. Because of the high prices in supermarkets many people buy the majority of their food from outdoor markets where fruit and vegetables are much cheaper. The picture above was taken in Calderón. One dollar here will buy you twenty mandarins.

What has surprised me the most in terms of costs is the price of chocolate. For three Snickers bars the price was just under $4, which is considerably more than they would cost in Finland! (we didn't buy them). Even a plain bar of chocolate was more than $2. Milk is also surprisingly expensive at $1.37 per litre.

In contrast to this, the cost of eating out is much lower than the prices we are used to in Europe. In fact the first time I asked where I could find a supermarket the locals asked why I wanted to cook food when it would be just as cheap to eat out. You can get lunch or dinner in a very nice Italian restaurant here for $6-$8 including a soft drink. Eating a sandwich or light meal in a cafe will cost around $2-$3.

We have spent very little time in the shops as that is not why we are here, but from the little I have seen so far handbags cost around $7-12 and T shirts $7-10. These are the prices in the middle of Quito. In the market of Otavalo a handmade doll was $2 and a woollen cargidan for a child $8.

You can see that for a foreigner from Europe or the US Ecuador remains relatively inexpensive but certainly not as cheap as I had imagined prior to coming. Much more significant is the costs faced by the local people given the very small incomes they have to live on. I am quickly finding out that even for those with regular jobs life in Ecuador is anything but easy.

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