IPCA 2022: why and how to monitor the price indicator? Understand its importance for managing your business

bitheerani319 · Post by **bitheerani319** » Wed Jan 22, 2025 9:40 am

IPCA 2022: why and how to monitor the price indicator? Understand its importance for managing your business
You're probably feeling the heat of the dreaded inflation dragon, whether at home or at your company. And it's not just your imagination: the IPCA 2022, which is considered the country's official inflation rate, has been recording numbers that reflect the increase in lawsuits throughout the economy.

Therefore, we will show you why you should monitor this economic honduras phone number list indicator and how to do so, in addition to reinforcing its importance for managing your business . Enjoy reading.

After all, what is the IPCA?
IPCA is the acronym for Broad Consumer Price Index. It is calculated by the Brazilian Institute of Geography and Statistics (IBGE) and reflects the increase in prices of products and services throughout the country.

It monitors changes in the cost of living for the population that earns between 1 and 40 minimum wages. For this reason, it is defined as broad. Other inflation indicators may focus their methodology on more specific audiences. An example of this is the INPC (Consumer Price Index) , also from the IBGE, which focuses its methodology on families that earn between 1 and 5 minimum wages.

How important is it for the economy?
The IPCA is the most important indicator for monitoring inflation in the country. Furthermore, it is called “official inflation”, since a series of public expenditures, salaries and contracts are readjusted based on the variation in this number.

Based on the IPCA, it is possible to measure the rate at which prices are rising, for example. The higher the IPCA, the faster the purchasing power is eroded. In other words, the money in everyone's hands becomes worth less.

The IPCA is so important that it has targets. Thus, the government needs to act to keep it within this target. For 2022, the target is 3.5% at the end of the year, with a fluctuation of 1.5% up or down.