Puerto Rico's soaring cost of living, from giant electric bills to $5 cornflakes
Puerto Rico is in a severe fiscal crisis due to its $72bn in debt, which its governor recently declared was “not payable”. It has been in recession since 2006, with a generally contracting economy creating an unemployment rate of about 12-13% compared to the US rate of 5.5% and about a 41% poverty rate compared to the US’s 14.3%. While the island is dotted with US chain stores like Walmart and Walgreens – amounting to the largest concentration of those stores in the world – residents face high costs for many necessities, while earning a remarkably low per capita income of about $19,000 per year, half the US average.
A recent report by Puerto Rico’s Institute of Statistics compared the cost of living in Puerto Rico with that of more than 325 urban areas in the US. It found that supermarket items were 21% more expensive than in the US. Utilities were the fourth-priciest in the US, after Fairbanks, Alaska, Honolulu, Hawaii, and Hilo Hawaii. Overall, the cost of living was 13% higher than in those 325 areas in the US. Here is a look at some of those staples and how their cost compares to the rest of the US.
Gasoline
While obviously a crucial worldwide commodity, gasoline is even more precious in Puerto Rico, which has very limited public transportation, particularly outside of the San Juan metro area. The song that launched the island’s reggaetón genre, Daddy Yankee’s Gasolina, makes that clear. The price of a gallon of gas in Puerto Rico is $3.22 compared to the nationwide US average of $3.10.
Energy
The average monthly cost of “energy” in Puerto Rico, which includes electricity and natural gas, among other energy sources, is $438.21, compared to $169.49 in the US – a staggering figure, mostly because of the high price of electricity. It’s a major reason the island’s electric utility, PREPA, is at the forefront of the debt crisis. While the US’s Energy Information Administration has said this is mostly due to the “cost of imported petroleum”, Mario Marazzi of the Puerto Rico Institute of Statistics says that it is also because the island’s geographical location makes it more difficult to take advantage of economies of scale. The current cost of 20.118 cents per kwh is down from 27.328 cents last August because of the drop in oil prices.
Dairy products
While there’s ample opportunity to run into cows grazing all along the island’s countryside, the cost of basics like milk and margarine can be challenging for families. A gallon of milk in Puerto Rico costs about $2.99, while the average US price is $2.39. Margarine, traditionally a cheap alternative to butter, is $2.59 a pound, while the average US price is only $1.09.
Iceberg lettuce
The PR Institute of Statistics findings reveal that the price of iceberg lettuce is the highest in all of the US, at $1.96 a head, whereas the average price across the US is $1.41.
Sugar
Puerto Ricans savor their café con leche with national pride, but it wouldn’t be the same without the sweet stuff. The high cost of sugar, $3.21 per pound compared to $2.31 in the States, is quite ironic given that Puerto Rico was home to one of the hemisphere’s biggest sugar industries in the first half of the 20th century.
Cornflakes
This staple breakfast food is $5.09 for a 10oz box, compared to a $3.51 nationwide average.
Bread
For Puerto Ricans, even their daily bread is at a premium. A loaf of bread will run you $2.39 as compared to the US average of $1.53.
Chips
And there’s no comfort in comfort food. A bag of potato chips will cost you a whopping $4.55, while the US average is $3.49.
Housing
While the average cost of a 2,400-square-foot (4 bedrooms, 2 baths) house in Puerto Rico is about $310,500 as opposed to about $304,000 in the rest of the US, it’s still burdensome considering the island’s per capita income and job situation. Puerto Rican average mortgage rates are similar to the US’s, around 4%.
People walk through a shopping area in Rio Piedras where many businesses have closed in San Juan, Puerto Rico. Photograph: Ricardo Arduengo/AP
In recession since 2006, the island is grappling with supermarket items 21% higher than the US average – even as 41% live in poverty
Puerto Rico's soaring cost of living, from giant electric bills to $5 cornflakes
A recent report by Puerto Rico’s Institute of Statistics compared the cost of living in Puerto Rico with that of more than 325 urban areas in the US. It found that supermarket items were 21% more expensive than in the US. Utilities were the fourth-priciest in the US, after Fairbanks, Alaska, Honolulu, Hawaii, and Hilo Hawaii. Overall, the cost of living was 13% higher than in those 325 areas in the US. Here is a look at some of those staples and how their cost compares to the rest of the US.
Gasoline
While obviously a crucial worldwide commodity, gasoline is even more precious in Puerto Rico, which has very limited public transportation, particularly outside of the San Juan metro area. The song that launched the island’s reggaetón genre, Daddy Yankee’s Gasolina, makes that clear. The price of a gallon of gas in Puerto Rico is $3.22 compared to the nationwide US average of $3.10.
Energy
The average monthly cost of “energy” in Puerto Rico, which includes electricity and natural gas, among other energy sources, is $438.21, compared to $169.49 in the US – a staggering figure, mostly because of the high price of electricity. It’s a major reason the island’s electric utility, PREPA, is at the forefront of the debt crisis. While the US’s Energy Information Administration has said this is mostly due to the “cost of imported petroleum”, Mario Marazzi of the Puerto Rico Institute of Statistics says that it is also because the island’s geographical location makes it more difficult to take advantage of economies of scale. The current cost of 20.118 cents per kwh is down from 27.328 cents last August because of the drop in oil prices.
Dairy products
While there’s ample opportunity to run into cows grazing all along the island’s countryside, the cost of basics like milk and margarine can be challenging for families. A gallon of milk in Puerto Rico costs about $2.99, while the average US price is $2.39. Margarine, traditionally a cheap alternative to butter, is $2.59 a pound, while the average US price is only $1.09.
Iceberg lettuce
The PR Institute of Statistics findings reveal that the price of iceberg lettuce is the highest in all of the US, at $1.96 a head, whereas the average price across the US is $1.41.
Sugar
Puerto Ricans savor their café con leche with national pride, but it wouldn’t be the same without the sweet stuff. The high cost of sugar, $3.21 per pound compared to $2.31 in the States, is quite ironic given that Puerto Rico was home to one of the hemisphere’s biggest sugar industries in the first half of the 20th century.
Cornflakes
This staple breakfast food is $5.09 for a 10oz box, compared to a $3.51 nationwide average.
Bread
For Puerto Ricans, even their daily bread is at a premium. A loaf of bread will run you $2.39 as compared to the US average of $1.53.
Chips
And there’s no comfort in comfort food. A bag of potato chips will cost you a whopping $4.55, while the US average is $3.49.
Housing
While the average cost of a 2,400-square-foot (4 bedrooms, 2 baths) house in Puerto Rico is about $310,500 as opposed to about $304,000 in the rest of the US, it’s still burdensome considering the island’s per capita income and job situation. Puerto Rican average mortgage rates are similar to the US’s, around 4%.
In recession since 2006, the island is grappling with supermarket items 21% higher than the US average – even as 41% live in poverty
Puerto Rico's soaring cost of living, from giant electric bills to $5 cornflakes
posted by Zo Heri at 6:27 AM
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