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The IPCA (Broad National Consumer Price Index) is Brazil's official measure of consumer inflation, and the seasonally adjusted (SA) month-over-month figure tracks short-term price changes while removing predictable seasonal effects. It measures the price variations of a basket of goods and services consumed by families earning between 1 and 40 minimum wages. This specific index is vital for the Central Bank of Brazil when determining the Selic interest rate. It provides a clearer view of the underlying inflationary trend by smoothing out holiday or harvest-related price spikes.
Calculated by IBGE using a Laspeyres formula, comparing current prices to a base period across 13 major metropolitan areas in Brazil. Seasonal adjustment is applied using statistical models to filter out recurring annual patterns.
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