What is Inflação?
Inflation is the general increase in prices. When inflation rises, the same amount of money buys fewer things. That’s why R$ 100 today buy less than R$ 100 did 10 years ago.
Como é medida no Brasil?
The main index is the IPCA (Índice de Preços ao Consumidor Amplo), calculated by the IBGE. It measures the price variation of a basket of products and services consumed by families.
Why does it matter? for your finances?
If your investments yield less than inflation, you’re losing money in real terms. Example:
- Inflation: 5% per year
- Savings: 6% per year
- Real gain: only 1%
Como se proteger?
- Invest in assets that yield above inflation
- Tesouro IPCA+ guarantees real returns
- Diversify between fixed and variable income
- Track the monthly IPCA