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Prices Fuel Outrage in Brazil, Home of the $30 Cheese Pizza

 

Shoppers here with a notion of what items cost abroad need to brace themselves when buying a Samsung Galaxy S4 phone: the same model that costs $615 in the United States is nearly double that in Brazil. An even bigger shock awaits parents needing a crib: the cheapest one at Tok & Stok costs over $440, more than six times the price of a similarly made item at Ikea in the United States.

 

For Brazilians seething with resentment over wasteful spending by the country’s political elite, the high prices they must pay for just about everything — a large cheese pizza can cost almost $30 — only fuel their ire.

 

. . .

 

Inflation stands at about 6.4 percent, with many in the middle class complaining that they are bearing the brunt of price increases. Limiting the authorities’ maneuvering room, the popular indignation is festering at a time when huge stimulus projects are failing to lift the economy from a slowdown, raising the specter of stagflation in Latin America’s largest economy.

 

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...companies were grappling with 88 federal, state and municipal taxes, a number of which are charged directly to consumers. Keeping accountants on their toes, the Brazilian authorities issue an estimated 46 new tax rules every day...

 

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