Lima vs Cusco Cost of Living Comparison

Takeaway for Lima vs Cusco: everyday costs favor Cusco (~33% CPI gap), housing index favors Cusco, wage stretch favors Lima. Use category winners, not a single headline, when the binding constraint is rent or income.

Overall Cost Winner

Cusco

Lower overall CPI; largest measurable gaps: Housing (65% gap, Cusco ahead); Utilities (65% gap, Cusco ahead).

Monthly Cost Difference

Estimated monthly housing+utilities+internet basket is about $375 lower in Cusco than in Lima (~64% gap; converted via exchange rates).

Estimated monthly difference: $375 (favoring Cusco).

Category Winners

CategoryWinnerNote
Overall CPICuscoCPI 17.3 vs 26 (lower is better)
HousingCuscoRent index 5.3 vs 15.3 (lower is better)
FoodCuscoGroceries index 23.8 vs 33 (lower is better)
TransportCuscoOne-way ticket 0.98 vs 1.67 (lower is better)
UtilitiesCuscoUtilities (85m²) 39.75 vs 114.75 (lower is better)
InternetCuscoInternet 66.41 vs 86.63 (lower is better)
RestaurantsCuscoRestaurant index 14.1 vs 23.5 (lower is better)
SalaryLimaAvg net salary 7812 vs 3859.5 (higher is better)
Purchasing PowerLimaPP index 33.6 vs 16.6 (higher is better)

Biggest Difference

Housing: Cusco leads with a 65% gap.

Rent index 5.3 vs 15.3 (lower is better)

Quick Decision

  • Students: Cusco — Lower housing / rent index (65% gap).
  • Families: Cusco — Housing is typically the largest household line; rent index favors Cusco; purchasing power favors Lima.
  • Remote Workers: Cusco — Everyday cost index (CPI) favors Cusco (~33% gap).
  • Budget Living: Cusco — Lowest overall consumer-price index in this pair.

Key Takeaways

  • Cusco is the overall cost winner on CPI (~33% lower everyday-cost index than Lima).
  • Housing: Cusco leads on rent index (65% gap).
  • Food / groceries: Cusco is lower (28% gap).
  • Purchasing power: Lima scores higher (51% gap).
  • Sample monthly basket (1BR + utilities + internet) is ~$375 cheaper in Cusco.

Analysis

Lima versus Cusco is not a single number. With a 33% CPI spread, groceries and services tend to move with Cusco, while housing follows Cusco's rent index. Purchasing power (33.6 vs 16.6) decides whether local wages offset local prices.

City pages

  • Lima, Lima
  • Cusco, Cusco

Country pages

  • Peru

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Trust & data transparency

Last updated: 2026-08-24

Data Sources

This page uses CityCost index inputs. Platform sources (see also Data sources):

  • Regional
  • Regional

On-page labels for this view: Regional · Regional.

Methodology

Each indexed city is associated with a reference basket of common living costs (for example rent, groceries samples, transport tickets, utilities, restaurant meals, and net salary where available). From those items, the platform derives relative indices such as CPI, rent, groceries, restaurants, and local purchasing power, using New York City = 100 as the familiar baseline convention for relative comparison.

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