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Price inflation in Brazil has affected the yields of virtually all investments in the financial market. According to the Brazilian Institute of Geography and Statistics (IBGE), in 2021, the country accumulated inflation of 6.90%.

With inflation accumulated until September, traditional fixed and variable income investments had their real return reduced by the IPCA, the official index that measures inflation in Brazil.

The IBGE released on Friday (8/10) the final IPCA report for September 2021. With a 1.16% figure for the month, the index corroborated the year’s accumulated inflation increase.

According to a survey by O Globo news, no fixed income investment exceeded the 6.90% rate of accumulated inflation in 2021. The new savings, for example, got a nominal rate of return of 1.73% in the first nine months of the year. 

However, when you consider the accumulated inflation in the same period, the real return on the new savings index in 2021 corresponds to a devaluation of 5.17%.

Meanwhile, the accumulated appreciation of bitcoin shows that the cryptoasset is the only investment that outperformed inflation in 2021. With an accumulated real price increase of almost 38% up to September of this year, the digital asset showed an appreciation against a scenario of fall in the real return of the main investments.

IPCA in September and bitcoin in October

Before disclosing the final report of the accumulated IPCA (National Consumer Price Index) in September 2021, IBGE (Brazilian Institute of Geography and Statistics) presented a preview of the index at the end of last month. Until then, the IPCA gave a preview of 1.14%.

However, this index increased to 1.16% after the final report’s release on Friday (10/08) and was added to the accumulated inflation in 2021. Thus, Brazil reached 6.90% between January and September 2021 and 10.25% cumulative IPCA over the last twelve months with this monthly close.

Although bitcoin ended September with an accumulated devaluation of 7.08%, the cryptoasset started October 2021, presenting a significant price appreciation.

After exceeding the US$ 50,000 level recently, the price of BTC has broken the support of US$ 55,000 and may end 2021 with an accumulated appreciation of more than 38%, the accumulated index until September.