FIPE Brazil Consumer Price Index (CPI) m/m

The IPC-FIPE (Consumer Price Index of the Institute of Economic Research — USP) indicator aims to collect data on the cost of living for families with income between 1 and 10 minimum wages in São Paulo. The information collected is divided into groups of expenditures that are: housing, food, transportation, personal expenses, health, clothing, and education, according to the Family Budget Surveys (POF).

The price variations are collected between the first and last day of the month, and IPC-FIPE is published around the tenth day of the month following the survey. Another interval of time for collection of variations and prices is the last four weeks immediately preceding, so FIPE can close the collected data to avoid errors in the disclosure and can deliver the information according to the consumption reality in Sao Paulo, mainly of the economic group in which the analyzed population is framed.

This index reflects the effect of inflation in the city of São Paulo, which has the highest Gross Domestic Product (GDP) among Brazilian municipalities. If IPC-FIPE is increasing, it may be reflecting an inflationary trend throughout the Brazilian territory.

The economy of Sao Paulo is a thermometer of the Brazilian economy, so IPC-FIPE is an important indicator that should be paid attention to. High inflation has a negative impact on the economy, weakening the Brazilian real.