Inflação, salário real e poder de compra

Abstract

The paper identifies some of the main effects on average real wages (or purchasing power) of an inflationary environment. Under the assumption of a fixed-frequency system for wage readjustments, a methodology is developed to divide the loss in purchasing power according to its various cause. The analysis is applied to the case of Brazilian wage earners and, in particular, to the case of the civil servants of the Federal Government during the years 1980-84.