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Finance Glossary

Just call us Bond. Amortized bond.

Over 700 finance terms, Shmooped to perfection.

Consumer Price Index

Definition:

or CPI

A distant cousin of the shiny gold guy from Star Wars, CPI is an index, which tracks inflation. And see inflation. See it twice. It’s important. Note that the CPI number does not include energy or food. Like people don’t spend a lot of their income on those things? The thinking is gas and food are just too volatile and are seen to cloud the "real" inflation numbers.

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