Dear Culinary Backstreets, I hear that prices in Rio are Olympic-sized. How can I eat the best the city has to offer, without spending an arm and a leg?
It’s true that prices in Rio aren’t what they used to be. As a recent New York Times article notes, Brazilians pay extremely high prices (particularly relative to wages) for just about everything from food to automobiles, due to both high inflation and a tax system that’s skewed in favor of consumption taxes. The high prices hurt both consumers and businesses. As NPR reported, one Italian restaurant in Sao Paulo recently went as far as taking tomatoes off its menu because the cost had shot up so much. Meanwhile, an influx of money – from the construction boom ahead of the upcoming 2014 World Cup and 2016 Summer Olympics and from the growing oil and gas sector developing off Rio’s coast – is driving up prices even further. Indeed, what’s most surprising about Rio’s priciest locales is how oversized the lines to get into them are.