Many people often do not know what the IPCA is, which is nothing more than the so-called Inflation index in Brazil. It was created in mid-1979 in order to measure food prices and their variants and possible fluctuations.
To understand more about the IPCA, its importance, in addition to the impact it has even on the food that arrives at your table daily, we clarify details on the subject throughout the article!
Learn how Inflation directly impacts the breakfast of Brazilian families
Understand below in more detail what the IPCA is, its meaning, purpose, how it affects the lives of us Brazilians and much more:
Acronym IPCA what does it mean?
O IPCA is the Extended National Consumer Price Index, this detail of the final term “broad” refers to the highest rate of the population of Brazil. It also corresponds to trying to see a variable of the average cost of products and services consumed by Brazilian families, aimed at food and services properly, housing, clothing and many other things.
What is the purpose of the IPCA?
The purpose of the IPCA is to measure, calculate variable prices equivalent to a basket of services, products, food offered and consumed by the population of our country, making a monthly comparative estimate, which serves as data for “monitoring the country’s growth”, even IBGE analyses, in addition to seeing development as a whole.
Through the Central Bank and the Brazilian government, this is still the official index of inflation in Brazil.
How does the IPCA affect Brazilians’ lives/ even breakfast?
Based on calculations that aim to measure the oscillation in the value of the products that reach the Brazilians’ table, the IPCA is an important comparison of the variable that every month can have the services offered, in addition to the products, fees, taxes placed on the products that you consume daily.
In addition to the “increase” or decrease in the values of products and services every month.
What is the importance of the IPCA in the Brazilian economy?
In addition to being able to see data, inflation rates can be measured, fundamental economic data for the country’s development and also decision-making mainly from the Central bank.
How is the IPCA calculated?
The calculation is done based on 465 products and services, considering purchases paid in cash, in addition to prices of products offered in a given region.
Quite similar to IBGE that makes the collection, of the prices of the products and services every month.
This careful research is carried out in regions, establishments, stores, supermarkets and various places where services and products are bought and sold.
Therefore, the IBGE performs the IPCA calculation according to the weights of each of the consumption areas. Thus, in each month, the results of each month are published based on data, from calculations and estimates.
What causes the IPCA to increase?
Considering that the price of services and products refer to the offer and dsends🇧🇷 The greater the search for a particular product or service, the more it values, the higher its final value.
The influence of the IPCA affects the value that products and services reach you, so it is much more than the prices of the necessities that we buy every day, it influences the economy in general.
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