The IPCA is Brazil's official inflation index, calculated monthly by IBGE. It measures consumer price changes across all income brackets and is the index used by the Central Bank to set inflation targets.
The current inflation target is set by the National Monetary Council and tracked at Copom meetings, which adjust the Selic rate to keep the IPCA within the target band.
Investments linked to IPCA (Treasury IPCA+, incentivized debentures) pay a fixed rate plus IPCA variation, protecting purchasing power against inflation.
Frequently asked questions
What is IPCA?
The IPCA is the Broad Consumer Price Index, calculated by IBGE. It is Brazil's official inflation measure.
What is the Central Bank's inflation target?
The target is set by the National Monetary Council. The Copom adjusts the Selic rate to keep the IPCA within the target band.
What does it mean to invest linked to IPCA?
Investments linked to IPCA (such as Treasury IPCA+) pay a fixed rate plus IPCA variation, so the return outpaces inflation.