Ecuador: Cost of Living surpasses many families monthly income

The deficit per family reaches 143.81 dollars. The testimonies confirm it. Food is the main expense.

Lucía Gámez is the mother of two teenagers. She and her husband work and family income reaches $ 700 a month. “Only in food spending an average of 160 dollars a week, a year ago spent 130. Meats of all kinds, including fish, are what has risen the most. More than 70% of the family budget goes in food and educational expenses, explains this woman.

Óscar Pita works as a mechanical engineer. Every 15 days he goes to the market with his wife. He says that in the last year prices have risen by at least 50%. “Before you could buy a dollar a pound of beans, bean, now it takes up to 2 dollars.” He works as an electrician and his salary is $ 500.

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These are not isolated figures, but confirm a reality. According to the National Institute of Statistics and Censuses (INEC), the average family income in 2016 was $ 683.20, compared to the cost of the Basic Family Basket, which was $ 700.96. That means that the average family does not have enough income to meet their needs.

The family income of $ 683.20 comes from adding the base salary of $ 366 plus salaries per tenths, and multiplied by 1.6 (estimated people who earn an income in each family).

But that is not all. If it is included in the analysis of all formal and informal sectors (population with some occupation), the average income per person drops to 337.12 dollars, or 539.39 per family. The difference with the Basic Basket is much higher and reaches $ 143.81. This gap corresponds to 79% of what an Ecuadorean type family destines monthly to the payment of rent, or to 61% of the expense in feeding. The family budget, then, only reaches to buy 78% of the Basic Basket.

Other Facts

In Quito, the basket is at $ 717.13, bringing the family deficit to $ 177.74. The same happens with cities like Loja, Cuenca, Manta, and Esmeraldas, where the Basket exceeds 700 dollars per month.

Mariana Landázuri lives with her husband, her youngest daughter and her little grandson. The husband works in the transport of goods. Your monthly income is $ 700. The youngest daughter works as an accountant in a real estate company, her salary is 700 dollars. The family income amounts to 1,400 per month.

According to the INEC, the biggest expense of families is in food. Landázuri estimates that his expenditure on food is 500 dollars per month, which represents 35% of the budget.

The cost of rent is $ 350 per month, which represents 25% of family expenses. But, in addition, it spends $ 250 in health, 130 in transportation, 100 in education, another 100 in basic services and another 100 in recreation, payment of debts and miscellaneous expenses.

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The result is that at the moment the family can not save because it is spending 1,530 dollars a month and its budget is of 1,400. Read Full Article