Three Decades of Inflation Hit 708%
30 Years of the Real Plan: Three decades after the launch of the Real Plan, celebrated this Monday (1st), the inflation acumulada no período foi de 708%, segundo a calculadora do Bank Central Bank (BC). In practical terms, this means that something bought with R$ 1 from July 1994 onwards is equivalent today to R$ 8.08, based on the latest release of the Broad Consumer Price Index (IPCA) in May.
The currency's loss of value can also be seen when comparing banknotes launched in 1994. A R$ 5 note 30 years ago is equivalent to R$ 40.40 today, while R$ 10 corresponds to R$ 80.80. Following the same logic, a R$ 50 banknote in 1994 is the same as R$ 404.01, while R$ 100 corresponds to R$ 808.02 today.
30 Years of Consolidation
The variation of more than 700% in the value of the real over 30 years is striking, but when you look at the historical data, you realize that this is only a fraction of the reality in Brazil between the 1980s and early 1990s. This period was marked by hyperinflation, with a frenzied rise in prices that eroded Brazilians' purchasing power.
To illustrate, in 1984, the country's annual inflation registered a cumulative rise of 215.27%. In subsequent years, the index continued to rise until it reached an impressive 2,477.15% in 1993. The consolidation of the Real Plan drastically reduced price variations, as shown by data from the Brazilian Institute of Geography and Statistics (IBGE).
Since 1995 - the first full year after the implementation of the new currency - the IPCA has ended the year above double digits on four occasions: 1995 (22.41%), 2002 (12.53%), 2015 (10.67%) and 2021 (10.06%). In 2023, the indicator closed the year with an advance of 4.62%.
Source: CNN Brazil
