It should come as no surprise that the cost of living is going up. Afterall, inflation happens. Yet the problem with Peru is that because it IS a third world country, it's hard to live ok. You either have to fight the idiots on the combis or get a crazy taxi or your own car. There's no middle ground.
Housing costs are going up and that bubble's going to burst soon.
Transport fares are on the rise as well.
Food is getting more expensive.
Seems like the only thing that's not going up is salaries.