Brazil drinks prices reined in during Cup

A planned hike in alcohol prices in Brazil has been put on hold until after the World Cup, the government says, after meeting with the hospitality industry.

World Cup fans are toasting after Brazil's finance ministry said a planned tax hike on beverages would be on hold until after the big event.

A tax hike on cold drinks was set to be instilled in June but Finance Minister Guido Mantega told reporters the measure was being postponed until after the tournament.

"The government will postpone the tax rise," Mantega said.

"It will be a Cup without drinks price rises," he said following a meeting with representatives of the industry, bar owners and restaurateurs.

Brazil will welcome some 600,000 tourists as well as some 3 million domestic visitors to venues in 12 cities during the soccer extravaganza.

The chairman of the Brazilian Association of Bars and Restaurants recently claimed putting up taxes on beverages could threaten some 200,000 jobs by the time the Cup ends.