In the last 12 months, Brazil’s official inflation rate, as measured in the National Broad Consumer Price Index (“IPCA”), has accumulated an increase of 6.52 percent higher than the 6.37 percent reported for the previous 12-month period. The rate surpasses the target ceiling (6.50 percent), i.e., the upper limit set by the Central Bank. The target stands at 4.5 percent, plus or minus two percentage points. Figures were released today (Jul 8) by the Brazilian Institute of Geography and Statistics (“IBGE”).

Influenced by the World Cup, hotel fares increased 25.33 percent, causing an impact on personal expenses, a group that presented an expansion of 1.57% in June, ?? 0.77 percentage points compared to May. The IPCA’s impact in June stands at 0.17 percentage points.

Used by the Central Bank as a parameter for the so-called Plan of Targets, the IPCA has been calculated by IBGE since 1980 and surveys families with an income of one to 40 minimum wages.