Inflation Calculator

Adjust values for inflation over time and compare purchasing power between different periods

Original Value

Inflation Index

Start Year

End Year

IPCA

Média 5 anos: 5.80% | Média 10 anos: 5.50%

What is Inflation?

Inflation is the generalized and continuous increase in prices of goods and services in an economy. When there is inflation, the purchasing power of money decreases - meaning you need more money to buy the same things.

In Brazil, official inflation is measured by the IPCA (Broad National Consumer Price Index), calculated monthly by IBGE. Other important indices are IGP-M (used in contracts and rent) and INPC (focused on low-income families).

Main Inflation Indices in Brazil

IPCA (Broad National Consumer Price Index)

It is Brazil's official inflation index, used by the Central Bank as the inflation target. It measures price variation for families with income from 1 to 40 minimum wages. It is the reference for salary adjustments, contracts, and monetary policies.

IGP-M (General Price Index - Market)

Calculated by FGV, it is widely used for rent and service contract adjustments. It considers wholesale prices (60%), retail (30%), and construction (10%), being more volatile than IPCA.

INPC (National Consumer Price Index)

Focused on families with income from 1 to 5 minimum wages. It is used as a reference for minimum wage adjustments and salary negotiations for lower-income workers.

How to Use the Calculator

1
Enter the value you want to adjust for inflation.
2
Enter the start year (when the value was valid).
3
Enter the end year (to when you want to adjust).
4
Choose the inflation index (IPCA for general use, IGP-M for rent).
5
Click Calculate to see the adjusted value and detailed analysis.

Practical Examples

Salary Adjustment

If you earned R$ 2,000 in 2014 and cumulative inflation (IPCA) was 60% until 2024, your salary should be R$ 3,200 today to maintain the same purchasing power.

Price Comparison

A car that cost R$ 30,000 in 2010 would need to cost approximately R$ 70,000 today to represent the same real value, considering cumulative inflation of ~130%.

Rent Adjustment

A rent of R$ 1,500 in 2020, adjusted by cumulative IGP-M of ~35% until 2024, should be R$ 2,025 today.

Tips About Inflation

Invest to beat inflation: Keeping money idle loses value. Seek investments that yield above inflation (CDI, Treasury IPCA+).

Negotiate annual adjustments: Salaries and rents should be adjusted annually to maintain purchasing power.

Use IPCA for general comparisons: It is the most representative index for the average Brazilian consumer.

IGP-M can vary a lot: In some years IGP-M rose much more than IPCA. Consider renegotiating contracts with high IGP-M.

Plan large purchases: In periods of high inflation, anticipating purchases can be advantageous.

Be careful with fixed-rate investments: If inflation rises more than expected, you may lose money in real terms.

Frequently Asked Questions

What is the difference between IPCA and IGP-M?

IPCA measures inflation for the final consumer and is Brazil's official reference. IGP-M also considers wholesale and construction prices, being more volatile. IGP-M is common in rental contracts.

Why do prices rise more than official inflation?

Official inflation is an average of various products and services. Some items may rise much more (fuel, food) while others rise less. Your 'personal inflation' depends on what you consume.

How does inflation affect my investments?

Investments need to yield above inflation to generate real gains. If inflation is 5% and your investment yields 4%, you are losing purchasing power even while 'earning' money.

What causes inflation?

Main causes: excess money in the economy, increased production costs, demand greater than supply, expectations of future inflation, and currency devaluation.

What is real vs nominal inflation?

Nominal value is the absolute number (R$ 100). Real value considers inflation - R$ 100 from 2010 does not buy the same as R$ 100 from 2024. This calculator helps you understand this difference.

How to protect my money from inflation?

Invest in assets that keep up with or exceed inflation: Treasury IPCA+, CDI-indexed CDBs, inflation funds, real estate, stocks of solid companies. Avoid leaving money idle in checking accounts.

What is Brazil's inflation target?

The inflation target is set by the CMN (National Monetary Council). Currently the target is 3% per year, with a tolerance of 1.5 percentage points up or down (1.5% to 4.5%).

What is deflation?

Deflation is the opposite of inflation - when prices fall across the board. It seems good, but can be dangerous for the economy as consumers delay purchases expecting lower prices, reducing sales and jobs.