Following up on our recent “price comparison” posts for Coca-Cola cans, cars, airfares, scotch, and panettone, here are three more examples of just how expensive Brazil has become. Below you will find three consumer good items: a pair of tennis shoes, a men’s suit, and a 100ml perfume bottle. We compare their prices and taxes in Sao Paulo and Miami.
Tennis shoes (Reebok DMX):
Men’s Suit (Armani):
100ml Perfume Bottle (212 – Carolina Herrera)
What happens is that consumers find it difficult to shop in Brazil, which explains their shopping spree trips to Miami and NY. The excessive tax burden and high financial cost built into the credit just make the problem more complex.