Trujillo is the most expensive city for the fifth consecutive month, according to the INEI: what are the causes?

As of August 2023, Trujillo ranked first according to the Index of Variation of the Price Indicators of the Economy prepared by the INEI. This makes the City of Eternal Spring the most expensive in Peru for the fifth consecutive month, according to the institution. Francisco Huerta Benites, Dean of the College of Economists La Libertad, explained some of the causes of this phenomenon.

Why is Trujillo considered the most expensive city in Peru?

Huerta Benites, in statements for La República, explained some factors that have boosted inflation.

• Inefficient marketing channels: the places where the products are sold are not the most efficient. The dean recommends creating a wholesale market or mass establishments.
• citizen insecurity in Trujillo: This factor increases the price and production of products.
• Fertilizer shortage in the country: farmers have been forced to increase the price because they cannot access cheap fertilizers.

Percentage rate of inflation in Trujillo compared to other cities in Peru, according to INEI

The report prepared by the INEI has Trujillo with a variation of 8.93% (annualized), more than 3% above the national average. Francisco Huerta Benites indicates that transportation, food and beverages outside the home are the goods that have risen the most in recent months.

Are the products of the basic basket expensive in Trujillo?

In statements to La República, Tomás Alvarado, president of the Federation of La Libertad Markets, believes that the price of food in the city is cheap compared to other places. “Regarding basic necessities, we are in a time where prices are affordable, compared to other sites,” he stated.