Consumer price index is one of the major economic indicators that is primarily focused on the monitoring of an inflation and other related processes.
Calculation of this index is fairly simple and consists in the consideration of the price dynamics of those products and services that are included in the market basket. It is calculated in the currency of a country that is considered. This indicator is the most frequently used when considering the leading countries.
There is a generally-accepted formula that can be used for the determination of the consumer price index. To do this, it is needed to compare this indicator with the alteration of the interest rate. In the usual circumstances, these indicators don’t have to be very different from each other. If this condition is fulfilled, we can say that there is stability in this country. Therefore, appeal of the state’s currency grows in the eyes of investors.