Prices in Brazil have risen over the past 10 years and certain destinations, such as Rio de Janeiro and São Paulo, are not as cheap as they once were. It's hard to work out the average budget for a vacation in Brazil, as it all depends on your destination, the type of trip you are planning to take and the level of comfort you're seeking.
Even though prices keep going up, Brazil is still a cost-efffective destination. The cost of living is much lower than in Europe and it's often cheaper to eat out in a little, local restaurant than buy/cook your own food.
Obviously, the price ranges vary - it all depends on the place you choose. Generally, restaurants and bars are reasonable; you'll usually be charged less than 1 or 2 GBP/USD for a caipirinha on a terrace. The cheapest way to eat is in canteens where you pay for a meal by the kilo! You pay for the weight of your meal, regardless of its contents, be it duck, pork, vegetables etc. It's cost-effective and you get to sample a wide range of local specialities, all in the same meal. Depending on your appetite and the establishment, you'll pay around 10 GBP/USD per person, if not less.
Accommodation is varied, but there's something for everyone. A night in a youth hostel is around 10 GBP/USD per person, whilst a double room in a standard hotel goes for roughly 25 GBP/USD. Obviously, you can opt for something more luxurious and spend up to 200 GBP/USD. Bear in mind that prices vary from town to town, Rio de Janeiro and São Paulo being, of course, more expensive.
To give you an idea of how much you should expect to pay in Brazil and help you work out your vacation budget, here's a little list of current prices. Prices are in Reals, the Brazilian currency and you need to divide them by 6 to get the GBP equivalent and by 4 to get the USD equivalent.
A bottle of water: 1 to 2 Reals
A cab ride: between 8 and 40 Reals
A bus fare: 1 to 3 Reals
Lunch in an averagely priced restaurant: 20 - 30 Reals
A liter of beer in a bar: between 5 and 9 Reals