MercoPress. South Atlantic News Agency

Brazil grows cheaper for Uruguayans, with price gaps of up to 394%

Economy and Finance Minister Gabriel Oddone said the government is finalizing regulations for measures approved in June to alleviate the impact on border cities

Brazil continues to offer a cheaper alternative for Uruguayan consumers, with goods costing between two and four times less in border cities. According to a report by the Economic Observatory of the Catholic University of Uruguay (UCU), cited by El País, prices in the Brazilian city of Quaraí are on average 74.4% lower than in neighboring Artigas, marking a widening gap compared to previous months.

The study, conducted by economists María José Medin and Gimena Abreu, compares the prices of 57 basic consumer products through the Border Price Indicator (IPF), which tracks cost differences between the two countries. In August, the gap was 66.3%, meaning Brazil is now eight percentage points cheaper for Uruguayans.

Among the categories with the largest gaps are household products, 103.5% cheaper in Brazil, and food and non-alcoholic beverages, where prices are 86.5% lower. Only butter and yogurt are slightly cheaper on the Uruguayan side.

Some goods show extreme differences: salt costs 394% more in Artigas than in Quaraí, detergent is 232% higher, and light bulbs 231% more expensive. Alcoholic beverages and cigarettes show a 126% price gap, with beer costing 175% more in Uruguay.

Clothing and footwear are about 52% more expensive in Uruguay, particularly women’s jeans, while eating out costs 52% more. In contrast, fuel prices show the smallest gap, 9.4%, due to a recent tax cut on gasoline.

Economy and Finance Minister Gabriel Oddone said the government is finalizing regulations for measures approved in June to alleviate the impact on border cities, where cross-border shopping has surged.

The UCU report attributes the widening price gap to a stronger exchange rate and lower inflation in Brazil. Prices in Porto Alegre fell 0.5% in September, while Uruguay saw a 0.4% increase in October. “The relative cost of living in Artigas continues to rise compared to Quaraí,” the study concludes.