Prices may continue increasing in Rio, warns IBRE economist

Facing increasingly higher prices of products and services in Rio de Janeiro - greater than the average of other Brazilian capitals - the locals have decided to rename the Real the surreal currency, in response to the high cost of living in the city.In an interview with the newspaper Valor Econômico, the coordinator of the General Price Index (IGP) calculated by the Brazilian Institute of Economics (FGV/IBRE), Salomão Quadros, confirms this perception of the residents of Rio. According to him, items like drinks, the movies, the gym, parking and higher education in the state capital increased more than in the rest of the country. Quadros says that some of the items that were more expensive in Rio are precisely those which have a greater weight in the shopping basket of Rio's residents than residents of other cities, such as the movies. The movies increased 9.73% in Rio in 2013 against the average of 7.79% in other seven state capitals, he says.The economist also warned about the risk of prices decreasing in the country after the World Cup, but remaining high in Rio de Janeiro due to the 2016 Olympics. Most of this inflation is felt in services, says Quadros, referring to the increase in prices of car repair shops, parking lots and beauty salons.The coordinator of the IGP also indicates that, in this scenario, the middle class tends to suffer more.The surrealCreated by the designer Toinho Castro, the imaginary currency has already turned into a movement on Facebook. The page ?Rio $urreal - NÃO PAGUE? (Rio $urreal - DO NOT PAY) has more than 120,000 followers and has also sparked off reactions in other regions of the country.
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