MercoPress. South Atlantic News Agency

Punta Arenas, second dearest city in Chile

Punta Arenas is the second most expensive Region-city of Chile with the country's capital Santiago figuring top of the rank, according to the Business Administration Department from the Concepcion Development University.

The report refers to families in the top ABC1 bracket which means they have an average monthly income above 3,500 US dollars and the head parent with at least 17 years of schooling.

The annual report helps Chilean companies determine living expenses for managers and personnel in different cities.

Rent, children's education and clothing are by far dearer in Santiago.

The survey ranks Santiago with 100 points, and is the reference for the other twelve regional capitals of Chile.

The ranking shows Punta Arenas in second place with 83,9 points, which makes it 16,1% cheaper than Santiago, and further distant from the 2004 difference.

Marcella Allué from the Business Administration Department explains that "cheaper" living conditions in extreme cities of Chile, such as Punta Arenas can be explained by the expansion of the big chain stores.

"These stores and strong competition have pushed down prices of clothing, footwear, food and beverage", said Ms. Allué.

Education is by far the item with the highest incidence in family budgets particularly in Santiago. With a 100 points reference for Santiago, the other twelve cities are below 75 points. In Punta Arenas the education index stands at 68 points.

The overall index includes the main family disbursements: food, housing, children's education, clothing, leisure, transport, communications and others.

The latest ranking was made working of data collected November 2004.