IPCA
The IPCA, or Índice Nacional de Preços ao Consumidor Amplo, is a widely-followed inflation index in Brazil. It measures the change in the prices of a basket of goods and services purchased by households in urban areas. The IPCA is published monthly by the Brazilian Institute of Geography and Statistics (IBGE).
The IPCA is used by the Brazilian government to set monetary policy. It is also used by businesses to make decisions about pricing and investment.
The IPCA has been rising rapidly in recent months. In May 2022, the IPCA rose by 1.06%, the highest monthly increase since October 2021. The 12-month rate of inflation, as measured by the IPCA, is now 11.73%, the highest level since 2015.
There are several factors that are contributing to the rise in the IPCA. These include:
- The war in Ukraine. The war has caused a surge in the prices of energy and food, which are key inputs for many businesses.
- The global supply chain crisis. The supply chain crisis has made it more difficult for businesses to get the goods and materials they need, which has led to higher prices.
- The Brazilian government’s fiscal stimulus. The Brazilian government has implemented a number of fiscal stimulus measures in response to the COVID-19 pandemic. These measures have increased the amount of money in circulation, which has also put upward pressure on prices.
- The weakening of the Brazilian real. The Brazilian real has weakened against the US dollar in recent months, which has made imported goods more expensive.
The rising IPCA is a major concern for the Brazilian government and businesses. If inflation continues to rise, it could lead to a loss of purchasing power for consumers and higher costs for businesses. The government is taking steps to try to control inflation, but it is unclear whether these measures will be effective.
The AI has provided us with the news.
I’ve asked Google Gemini the following question, and here’s its response.
Please search for “ipca” which is rapidly rising on Google Trends BR and explain in detail. Answers should be in English.
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