In South America, home to some of the world’s most famous soccer players, from Argentina’s Lionel Messi to Brazil’s Neymar, avid fans are starting to get nervous about their countries’ chances at the World Cup — and the rising cost of supporting them. them.
The region of about 650 million people is battling one of the worst inflations in the world, including in Argentina, where prices are on track to rise 100% this year. That’s driving up costs from football stickers and jerseys to game-time snacks and beer.
“The business is very inflated,” said 20-year-old Brazilian Breno Nery, who was shopping for collectible football figurines in a mall in São Paulo. The value of a pack of five stickers has doubled to R$4 (US$0.79) since the 2018 World Cup in Russia.
It’s even worse in Argentina, where the suggested price of a package has jumped 900% to 150 pesos ($0.95) after years of sky-high inflation. But scarcity has also caused prices to double or triple on the internet or in alternative markets.
Prices are rising for all sorts of goods, from merchandise and collectibles to the food and drinks fans are likely to buy when competition starts this month in Qatar. Brazil and Argentina are among the favorites.
In Buenos Aires, if fans want to buy a football jersey, they also have to count on even higher prices, thanks to a skewed exchange rate linked to tight capital controls and supply chain disruptions.
In Argentina, the new Adidas national team shirt will cost 28,999 pesos, a whopping 1,658% increase over the last World Cup, while in Brazil, Nike has launched the newest “Seleção” shirt for R$349.99, a 40% jump.
“Brazilian fans will not only suffer when cheering for the national team in this World Cup, but also when paying the bill,” said investment broker XP in a recent report.
Despite the price increases, sales of the kit from Brazil are up 40% from 2018 in volume, said Grupo SBF, a Nike distributor. Not everyone is convinced, however.
“I just want to wear a shirt that says ‘Brazil’ anyway, it’s already great,” said Daniel Santos, 20, speaking at a mall in São Paulo.
The World Cup will be played from November 20th to December 18th – late spring in the southern hemisphere, a change from the regular dates, which usually fall during the winter in the region.
The milder climate has made companies such as the meatpacker BRF and the brewery Ambev project an increase in sales, as South Americans gather with family and friends to watch matches with a cold beer and also with a barbecue.
But fans may be scared.
Meat is now nearly 80% more expensive in Brazil than it was four years ago, according to XP, an increase nearly three times as steep as general inflation. The prices of soft drinks and beer rose 20%.
Traditional Argentine roast beef prices rose more than 600% from June 2018 to August 2022, data from local industry group IPCVA showed. A liter of beer almost quintupled in cost.
The World Cup even prompted Argentina to roll out capital controls on foreign travel and spending dubbed the “Qatar” exchange rate, making travel to the Middle Eastern country even more expensive in local currency.
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