Cuenca Tops the List for Most Expensive Basic Food Basket in Ecuador
Cuenca is still officially the most expensive city in Ecuador when it comes to covering basic family expenses, with its Basic Family Basket (BFF) costing a steep $858.14 per month. Close behind are Quito, Manta, and Guayaquil, where families spend between $841.00 and $825.37 monthly on essentials.
These figures come from the Consumer Price Index (CPI) for June 2025, released by the National Institute of Statistics and Census (INEC). The CPI tracks how prices move over time and how that affects the cost of living across Ecuador.
INEC’s CPI data is gathered from nine major cities - including Cuenca, Quito, Guayaquil, Manta, Machala, Loja, Esmeraldas, Ambato, and Santo Domingo, and reflects monthly shifts in the cost of 73 essential goods and services that Ecuadorian households typically purchase. The purpose is to understand how inflation chips away at purchasing power.
Economists often compare the CPI to a household’s minimum income, taking into account salaries and bonuses, but not reserve funds, which are governed by current labor laws.
Why Is Cuenca So Expensive?
A big part of Cuenca’s high cost of living is rent. According to the INEC, the average rent in Cuenca is $257.59. One report estimates that families also spend around $261 per month on food and beverages, bringing total essential expenses to over $500 monthly, and that’s before accounting for transportation, healthcare, or education. With numbers like these, it’s easy to see how quickly costs can pile up for local families.
Economist Nancy Buestán says that Cuenca’s rent prices are actually higher than those in Quito or Guayaquil, which is surprising to many. She explains that this consistent price difference has a direct and lasting impact on how much Cuencanos spend each month.
In addition, Cuenca’s economy is more dynamic than most cities. It boasts a strong industrial base in sectors like ceramics, furniture, footwear, and handicrafts, which fuels local consumption and gradually drives up prices across the board.
“The city’s dynamic economy, low informality, and strong purchasing power all combine to keep prices high,” Buestán notes. “Families in Cuenca simply have more financial ability to spend, which keeps demand elevated even at premium prices.”
Remittances Are Fueling Spending Power
Another key factor is remittances, money sent home from abroad. Ecuador saw a significant 23.7% jump in remittances during the first quarter of 2025 compared to the same period last year, totaling $1.72 billion.
The United States remains the top source, contributing 75.6% of that total, about $1.3 billion, a 32.4% increase from early 2024.
The provinces of Guayas, Pichincha, Azuay, and Cañar collectively received over 70% of total remittances, adding up to $1.2 billion. Of that, Azuay received $291.3 million, an increase of $28 million from last year.
Within Azuay, Cuenca alone brought in $219.9 million, marking a 9.5% rise compared to 2024. Meanwhile, Gualaceo saw an impressive 16.3% jump, going from $18.7 million to $21.7 million.
Bottom line: While Cuenca is known for its charm and quality of life, that lifestyle comes at a cost. A strong local economy, high demand for housing, and a steady stream of remittances all contribute to the city holding the title of Ecuador’s most expensive place to meet basic family needs.
Source: El Mercurio