Purchasing Power Calculator

The illusion of the number on the note

The 100 reais bill issued in 1994, when the Real Plan stabilized Brazil's economy, still has the number '100' printed on it. The Central Bank didn't go into your wallet to change the number on the bill. However, any Brazilian feels at the supermarket that the same 100 reais buys an infinitely smaller cart today.

The Mathematics of Purchasing Power

If the supermarket shopping cart went from 100 reais to 200 reais (100% inflation), it means that your same 100 reais from before today can only buy half (50%) of the products. The mathematical formula we created divides the value at the time by the accumulated inflation, proving why leaving money in the checking account causes a real loss of wealth every month.