Lima, with nearly 10 million inhabitants, has become the fourth most expensive city to work and live in across South America, according to the latest Cost of Living Ranking
The Peruvian capital shares the fourth position with Rio de Janeiro and is placed behind Montevideo (1st), Santiago (2nd) and Sao Paulo (3rd).
Likewise, Lima climbs 11 places in the global ranking going from 132nd in 2018 to 121st this year.
"The price increase in Lima is influenced by a strong local currency against the (U.S.) dollar, in contrast to currency devaluation in other countries," Mercer
Peru CEO Gabriel Regalado explained.
However, he said Lima remains attractive for foreign talented professionals, although they need to be more efficient when it comes to spending money.
"Economically speaking, the city keeps growing, attracting foreign capitals, generating wealthy, with plenty of room to make progress in public investment and infrastructure," he noted.
The challenge is passed on to enterprises, which need to grow quickly and profitably, since parent companies' costs like salaries and benefits appreciate upwards when denominated in U.S. dollars.
According to the global ranking, Montevideo (70th) ranked as the costliest city in Latin America, followed by San Juan (72nd), which jumped twenty-three spots.
Other cities in Latin America that climbed on the list of costliest cities for expatriates include Panama City (93rd), San Jose (131st), and Havana (133rd) rising twenty-one, ten, and twenty-two spots, respectively.
Cities that fell in the ranking despite price increases on goods and services as well as accommodation costs are located in Brazil and Argentina.
In particular, Sao Paulo (86th) dropped twenty-eight spots. Rio de Janeiro (121st) dropped twenty-two places, while Buenos Aires (133rd) fell fifty-seven places.
It must be noted Managua (200th) is the least expensive city in Latin America.
to see the full ranking.