Family Economy: Five out of 10 Peruvians don’t make ends meet

more than half Peruvians struggles to make ends meet on a meager family budget, Datum Internacional said in a review.

The study indicates that 52% of Peru’s population has been hardest hit by the rise in the cost of living, which has been affected by the pandemic, the political crisis and other economic factors.

Only 14% of Peruvians manage to live comfortably, without financial worries, and 33% of the population say that they have an intermediate situation with the budget, not so comfortable and not so crowded.

It is worth noting that this is known after 2022 closed with inflation exceeding 8%, the highest level in 26 years, which means a loss of purchasing power for citizens.

In Metropolitan Lima price increase According to the Peruvian Institute of Economics (IPE), this meant a loss of purchasing power of SGD 270 per month. In other words, Lima families now earn S$270 less than they did a year ago.

In order for the money to reach them, many families had to cut their monthly expenses.

However, it is estimated that five out of 10 Peruvians have had to cut some expenses in recent months, especially among adults over 65, as 49% have reduced their intake.

In the north of the country, 58% have been forced to cut their spending, and in the central zone, 64% have been forced to limit their spending in recent months.

Even in socio-economic segments A and B, half of the citizens had to cut their spending, and 36% are already considering reducing their spending in the coming months due to inflation.

Currently, the middle class is the hardest hit by rising costs of living, with 57% of people in the C segment suffering financially to make ends meet.