MercoPress. South Atlantic News Agency

Montevideo, one of the cheapest in South America.

A report from Mercer Human Resources Consulting, MHRC, indicates that Montevideo has become the second cheapest capital in South America and is even below some of the main cities in Central America.

Since the strong devaluation of the Argentine currency in 2002 Latinamerican cities overall have become some of the cheapest to live according to the MHRC poll, with Asunción, capital of Paraguay ranking 144 with 42,7 points.

The reference city is New York with 100 points which is the cost of a basket of goods and services.

Other cities in the region include Montevideo, Uruguay ranking 143 and with 47,2 points; Buenos Aires 141 and 47,7 points; Bogotá, Colombia 139 and 48,6 points.

At the other extreme Lima, Peru ranks 118 with 63,6 points, followed closely by Santiago, Chile, 123 and 62,9 points; Sao Paulo, Brazil 128 and 60,3 points; Rio do Janeiro 131 and 59,3 points; Caracas, Venezuela, 134 and 54 points; Quito, Ecuador 136 and 52,8 points.

However Santiago jumped 9 places compared to 2003 (134 and 50,5 points) because of the strong revaluation of the local peso against the US collar.

In the Caribbean and Central America, San Juan, Puerto Rico leads as the most expensive of the area with 77,9 points and ranking 65. The cheapest is Santo Domingo, 142 and 47,3 points.

Mexico figures in position 84 with 73,3 points, a slight drop from position 77 in 2003.