Answer
Yes, Uruguay may be expensive relative to some countries in Latin America, but the answer depends on the city, housing, family, and habits. One person may only need a room and bus travel, while another pays for a house, car, private school, and healthcare.
Comparisons based on average figures from websites or other people's budgets are often misleading. You need to separate the initial costs of moving, a regular month, and a stress scenario. The budget includes rent, gastos comunes, utilities, healthcare, transport, documents, communications, groceries, school expenses, and a reserve for delayed income.
It is better to assess the country using your own basket of expenses. Save receipts, look at actual listings in your area, and calculate currency risk if your income is not in pesos. Uruguay can be comfortable with a steady income, but difficult for someone without an emergency fund and a clear plan.