Retirees who earn more than the minimum wage lose purchasing power
The result of the INPC in 2025 closed an unfavorable account for those who receive retirement or pension from the INSS above the minimum wage. The index, which serves as the basis for the readjustment of these benefits, accumulated an increase of 3.9% in the year, below the country’s official inflation. In the same period, the IPCA ended 2025 with an increase of 4.26%.
In practice, this means that retirees and pensioners outside the national minimum wage — who receive more than one minimum wage benefit — will have a smaller increase than the average price variation, which points to a loss of purchasing power throughout the year.
With this adjustment, the INSS ceiling should rise from R$8,157.41 to around R$8,474.55 in 2026, an amount that still needs to be confirmed by federal government order in the Official Gazette of the Union.
IPCA of 2025 is the lowest since 2018, but services inflation worries economists
The year ended with official inflation within the tolerance band, but experts say that qualitative assessment points to very stressed service prices, especially labor-intensive ones
The rule is different for those who receive a minimum wage. These benefits are automatically corrected according to the value of the national minimum wage, which became R$1,621 at the beginning of January. In this case, the adjustment does not depend on INPC.
Data released by IBGE show that the INPC increased by 0.21% in December, accelerating compared to November. In 2025, the index was below that recorded in the previous year, when it had reached 4.77%.
In the last month of the year, food prices rose again, while the prices of non-food products also increased slightly.
Regional variations drew attention. Porto Alegre had the biggest increase in December, driven mainly by the increase in electricity and meat bills. Curitiba registered a drop in the index, influenced by the reduction in electricity and fruit prices.
In the year to date, Vitória had the highest inflation among the regions surveyed, pressured by electricity and rent.
Throughout 2025, food prices rose less than in the previous year, while non-food items increased more strongly. This change in price behavior helped contain the INPC, but was not enough to keep up with the IPCA.
The INPC has been calculated since 1979 and reflects the cost of living of families with an income of up to five minimum wages. Since 2003, it has been used as a reference for adjusting pensions above the minimum. The IPCA, which measures the country’s official inflation, considers families with higher incomes and serves as the basis for Central Bank decisions.
