Chile is not a typically cheap Latin American country. What you pay for in Chile is a stable and safe country. Cost of living is, however, cheaper than in Europe or the USA. As a general rule, cost of living is about 25-40% cheaper depending on your lifestyle.

Examples (US Dollars):

Meal for two at an excellent restaurant, including wine: $30-50

Set lunch in local restaurant of chicken, mashed potatoes and salad: $4

Litre of milk: 70c

Kilo of filet steak: $8

Decent bottle of red wine: $5-6

Kilo fresh fish: $4-6

Kilo apples: 70c

Large pineapple: $1.50

Pack of cigarettes: $3

Litre of petrol: $1.20 Full time live in maid: $5-600/month

One of Chile's advantages is that there are no or very low import duties. This means that imported goods such as electronics, food and cars are as cheap as or cheaper than in Europe or the USA.

Another advantage is that Chile is a major producer of fruit, vegetables and fresh seafood and salmon meaning that the prices of these basic goods are very cheap.

The local currency is the Chilean Peso. US Dollars are not widely accepted except at tourist spots and large hotels.

ATMs are widely available and are the best means of obtaining local currency. Credit cards can be used in most shops and restaurants. Travellers' cheques are not commonly accepted.