™A portfolio returning 7% while prices rise 3% has less purchasing-power growth than the nominal result suggests; consumer price index (cpi) supplies part of that context.
Economics
Consumer price index (CPI)
A measure of average price changes for a basket of consumer goods and services.
Plain-English context
Why it matters
Economic terms matter because rates, prices, growth and expectations can influence many assets at the same time.
Assuming Consumer price index (CPI) has one universal interpretation without checking the source, rules, timeframe or methodology.
Use current definitions. Product terms, tax treatment and market rules can change. Confirm important details with official disclosures, regulators and regulated providers.