This is kind of old news, but we thought it would be interesting to re-post just to show how ridiculous car prices are in Brazil. With inflation soaring and the Brazilian Real (BRL) recent depreciation, the price gap tends to widen. Original article here.
The Rio Times
By Amy Skalmusky, Contributing Reporter
RIO DE JANEIRO, BRAZIL – It’s no secret that some items cost significantly more to buy in Brazil then they do in the U.S. or Europe. In some cases it’s even less expensive to fly home to buy items to bring back, then purchase here. There are many global trade issues at play, and the recent stand-off over cotton is an example of how government subsidization, import tariffs and taxes play a major role in the price the end consumer pays at the checkout counter.
- Click here for the full article
|The latest Big Mac Index from the Economist shows the Brazilian Real 31% overvalued compared to the US$.Brazil is no longer cheap in US$ or Euro terms. Of course, “cheap” is relative.
The best way to compared cost is to calculate how many hours you have to work in your country to make a cash purchase of product X and then how many hours you would have to work in Brazil to purchase the same product X.
If your income is from abroad, then straight currency exchange rates will show you your cost of living. If your earnings are in Reais, then you should use the “hours worked” method.
|The Economist Big Mac Index|