BacktestFolio · Glossary
CPI
In plain language
The CPI is the thermometer of inflation: if it rises 3% in a year, the same basket of goods costs 3% more. In BacktestFolio, CPI is used to deflate the equity curve and show real returns — how much you earned after accounting for the loss of purchasing power.
Technical definition
Consumer Price Index: measures the evolution of prices for a representative basket of household goods and services over time. It is the basis for calculating real inflation; regional variants include HICP (Eurozone) and PCE (USA).