CPI

The CPI, which stands for ‘Consumer Price Index’, is an economic indicator used to measure the price development of goods and services purchased by consumers over time. The CPI is a way of assessing inflation, i.e. the general rate of increase in the prices of goods and services in an economy.

The consumer price index is calculated by collecting price data on a representative ‘basket’ of goods and services that consumers usually buy. This basket includes a variety of products, such as food, clothing, housing, transport, education, health care and other common goods and services. The prices of these items are monitored periodically over time.

Correlated words

Indicator

An indicator is a technical-analysis tool that processes historical price or volume data to describe a market's past behaviour.

Financial Instrument

A financial instrument is a contract that grants financial rights, such as shares, bonds or derivative products, to its holder.

Purchasing power

Purchasing power refers to the quantity and quality of goods and services that can be acquired with a given amount of money.

Bonds

Bonds are debt securities through which an issuer raises capital, committing to repay it together with a form of remuneration.

Deficit

A deficit is the situation in which, over a given period, outflows exceed inflows, resulting in a negative balance or shortfall.

Default

A default is a debtor's failure to meet the payment obligations arising from a debt or a financial instrument such as a bond.

Capital

Capital refers to funds or assets for investment or economic activities crucial for business growth and development.

Capital gain

Capital gain is the profit earned from selling an asset at a higher price than its purchase cost, commonly realised in stock markets.

Commercial Bank

Commercial Banks cater to individuals and small businesses, offering deposit accounts, loans, and other traditional banking services.

Central Bank

The Central Bank sits atop the banking hierarchy, working with the government to regulate monetary policy and currency issuance.

Stocks

Stocks are financial instruments representing ownership shares in a company, entitling holders to a portion of the corporate profits.

CPI