MercoPress. South Atlantic News Agency

Southern Chile has highest average food prices

According to a study conducted by the Chilean daily La Tercera, Coyhaique and Puerto Montt are the Chilean cities with the highest average food prices.

La Tercera based its findings on the prices of forty-eight basic foods of identical size and brand at the same national supermarket chain in twenty-two of Chile's largest cities. Topping the list as most expensive city was Coyhaique, located in the mountainous Patagonia area, and Puerto Montt, a port city located in the deep south of the country. The desert town of Calama placed a close third. In these most expensive cities, basic products such as bread, milk, potatoes, and beef can be twice as expensive as cities lower on the list. For example, feeding a family of four in Chile's southern city of Coyhaique can cost up to 40 US dollars a month more than in Santiago or Valdivia. Meanwhile, Chillan, located in the center of the country, was found to be the cheapest city in the country for food. There, a dozen eggs costs 30% less than in Coyhaique. According to the study, geographic location appears to strongly influence the price of food throughout the country. Cities deemed to be in "extreme" geographic areas where transportation costs are high and weather is often hostile have higher food costs. "Extreme locations have the largest product shortages," explains economist Francisco Labbe, of the Universidad Andres Bello. "They require greater transportation costs and there is often little demand because these locations have smaller populations." Santiago, meanwhile, falls nearly in the middle of the list of twenty-two cities, ranked as the ninth most-expensive. The study found that milk is significantly cheaper in the capital, while the city's potatoes are among the nation costliest. The Santiago Times