Custo de vida segue alto, Miriam, essa é a realidade!

Summary

Fernando Ulrich explains why falling IPCA inflation still leaves cost of living high: IPCA measures the pace of price increases, not the price level. Since 1994, Brazilian prices have risen nearly ninefold and the real has lost roughly 90% of its purchasing power. He argues the cause is currency debasement, and the Central Bank's 3% inflation target guarantees continued loss of purchasing power.

• July IPCA rose 0.07% month-over-month; annual inflation was 4.44%.
• Food and beverages fell 0.67% monthly but are up 60% since December 2019.
• IPCA level rose from 100 in 1994 to nearly 900; cost of living does not revert.
• The Brazilian real lost almost 90% of purchasing power since 1994.
• Minimum wage adjustments are annual and lag inflation, causing redistributive losses.
• The central bank inflation target is framed as a 3% annual currency debasement target.