As of January 27, 2026, Montevideo, Uruguay, is ranked as the city with the highest cost of living in Latin America, according to the annual Cost of Living Index by Numbeo, one of the world’s largest collaborative databases on prices, quality of life, and purchasing power.
The ranking, which compares the cost of consumer goods, food, restaurants and local purchasing power in cities worldwide, places the Uruguayan capital as the most expensive in the region, News.Az reports, citing foreign media.
According to Numbeo, the index uses New York City as the reference city, with a base value of 100.
Montevideo records a cost of living index of 55.58, meaning that, even as the most expensive city in Latin America, it is about 44% cheaper than New York.
In the regional ranking, Montevideo is followed by San Juan, Puerto Rico, with an index of 62.58, and San José, Costa Rica, with 52.87. Numbeo notes that although Puerto Rico is a U.S. territory, it is often included in regional comparisons because of its economic and geographic ties to the Caribbean and Latin America.
The report highlights that high costs in these cities are mainly driven by food prices, restaurant spending and, in some cases, greater monetary stability compared with other countries in the region.
By contrast, the cities with the lowest cost of living in Latin America in 2026 are concentrated in South America.
According to the index, La Paz and Santa Cruz de la Sierra in Bolivia top the list of the most affordable cities, with an index of 27.31. They are followed by Asunción, Paraguay, with 28.45, and São Paulo, Brazil, at 30.14.
The gap between the most expensive and the least expensive cities reflects the sharp economic differences within the region, both in terms of inflation and average income and consumer capacity.
In several countries, a lower cost of living does not necessarily translate into greater well-being, due to low wages and limited local purchasing power.
