Why Brazil is changing how it calculates inflation

Why Brazil is changing how it calculates inflation

The Brazilian Institute of Geography and Statistics has presented a new structure for its benchmark index for calculating inflation, the so-called National Amplified Consumer Price Index, or IPCA.

Looking from afar, the move could send shivers down the spine of some Latin American observers, being reminiscent of the Néstor Kirchner years in Argentina. The late politician tampered with how his country calculated inflation, which made several international organizations stop using Argentinian official data for their lack of reliability.

But the Brazilian case is very different. In fact, the country’s official statistics agency is making an effort to adapt to...

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