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.



  • Show Comments (5)

  • Guest

    Because motherfuckers know you are going to keep on paying what you have already been paying. NO price break for you kids. Greedy capitalist pigs for ya . .

  • Guest

    Thats not all true. They do not have a set way to collect all the taxes that US does. The reason they pay so much for the goods they buy is to make up taxes not collected (ex Income tax). Which I feel is a better way to collect taxes. Collect by what you spend, not by what you earn.

  • Guest

    Linked to the US$ !! ??
    Ohhh yessss….but only when the $ goes UP !

    That is typically the human nature !
    Those who decide (sell) choose what is the most profityble way…of doing profits.

    But this is the same in all developing countries in the world.

    Also your prices are relatively high because you have the highest energy price despite being oil self sufficient. Funny isnt it ????
    Everything is made/built/transported with energy (oil/gas/hydro etc).

    Just look at the retail gasoline prices in the USA – the largest user/ importer –

    Their prices is lower than yours despite having a much higher GDP per capita.

    This means that on a relative basis everything is much costlier in your country especially for the poors.

    Energy costs take a high percentage of your poors income but a low percentage to a U.S. poor citizen.

    In fact your energy costs is the highest even when compared to every S.A. countries.

    Brazilians governments and politicians are known to LOVE taxing everything far more than most developing countries….so they can steal far more through corruption.

    The higher the corruption, the higher the retail prices will be.

    Corruption and taxes are a cost that end up in the final retail prices.

    Therefore it is quite strange that no one really care for the generalized corruption practices in your country.

    It is estimated that the corruption in your country is the equivalent of around 10 % of your GDP.

    Since you are an US$ 800/900 billions economy, you know that $ 80/90 billions is roughly the amount that go to the corruption.

  • Guest

    This has been my question also…….Why do prices not fall when the dollar falls?…..Tenho issa pergunta tmbm!…Pq os precos nao abaixao quando o dolar abaixa?

  • Guest

    everyone says that many prices in brazil are linked to the dollar. Wonder why when the value of the dollar increases many prices for many things in brazil increase, but when the dollar is devaluated, the prices never go down, they stay the same!

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