In addition to the incalculable loss of human life, the pandemic caused by COVID-19 also brought great destabilization to the Brazilian economy, all as a result of interruptions to the normal flow of supply of products and services, both in Brazil and abroad.
The rise in the price of raw materials, manufactured products, goods and services, including imported goods, and the corresponding exchange rate fluctuations, caused inflation measured by the IGP-M to soar.
As a result, many companies went to court to review the application of the index as a monetary correction factor, given its surge resulting from an atypical situation.
In certain situations, that is, taking into account the particularities of each case, the Court of Justice of the State of São Paulo has accepted the request and determined the use of another index to replace the IGP-M, given that the main objective of the aforementioned index is to monitor the evolution of the prices of goods and services, and not necessarily to restore the purchasing power of the currency.
Therefore, for those whose contracts were significantly impacted by the application of the IGP-M, it is worth analyzing the feasibility of requesting, in court, its replacement by another index that reflects inflation more fairly.
