Brazil’s Cheap Cost of Living Is a Myth, World Bank Study Shows

A World Bank comparative study on prices and purchasing power has found that Brazil has the second highest cost of living in South America, beaten only by Chile.

But when it comes to household spending, Brazil drops to sixth place behind Argentina, Chile, Uruguay, Venezuela and Peru.

The study also found that the country with the lowest level of consumption per person was Bolivia, while Argentina, Paraguay and Bolivia had the lowest cost of living.

According to Eduardo Pereira Nunes, the president of the government statistical bureau (IBGE), which presented the results of the study, what happened in Brazil is that while inflation control kept the country from being the most expensive, inflation stabilization occurred with prices at a historic high.

"The dust is still settling after a period of violent inflation. What the World Bank study shows is that prices in Brazil have been stabilized but they have not fallen. Inflation is under control but we have not had deflation."

Nunes went on to point out that consumption is a function of income. The unequal distribution of income in Brazil means some Brazilians can buy very little because things are expensive compared to prices in other countries in the region.




You May Also Like

Brazil Releases 3,000 Plant Species Names to Prevent Biopiracy

In commemoration of World Biodiversity Day, which happened Monday, May 22, the Brazilian government ...

Brazil’s Petrobras Gets Top Honors for Sustainability and Ethics

Brazil's state-controlled oil multinational Petrobras was considered the most sustainable oil company in the ...

US President Bush plays the ganzá at Brazil's Morumbi Boys Association

Brazil Has Shown the World Adopting Ethanol Is Possible, Says Bush

Brazilian President Luiz Inácio Lula da Silva wasn't able to convince his American counterpart ...

While Market Sinks Lula Calls Brazil Industrious Ant Ready for Bad Weather

This whole year the Brazilian stock exchange hadn't seen a tenser day than this ...

With Iran World Needs Patience Not Pressure, Says Brazil’s Lula in Germany

Ten days after the visit the president of Iran, Mahmoud Ahmadinejad, paid Brazil, the ...

Moroccan Foreign Minister, Mohamed Benaí¯ssa, on visit to Brazil

Morocco Believes Brazil’s Technology Can Help Africa and Arab Countries

The importance of cooperation between developing countries is part of the vision of the ...

Shady Business as Usual in Brazil, One Year After Murder of US Missionary

"It hasn’t changed very much. The area was reoccupied by squatters, and the people ...

Part II: Richard Boukas talks about life, music, and the lure of the Brazilian.

Surveying the panorama, I saw mile after mile of developed beaches fronted by high-rise ...

Brazil is not ready for another general blackout like the one in 2001

Brazilian Politics: Navel Gazing in Brasília – Largesse in São Paulo

One of the most depressing aspects of Brazilian politics is the way many – ...

Vegetable pizza by Brazilian Perdigão

Profits Fall 8% at Brazil’s Food Maker Giant Perdigí£o

One of the largest food companies in Latin America, Perdigão, had its 2006 financial ...