ECONOMICS GLOSSARY
CPI
Consumer Price Index
A measure tracking price changes for a basket of consumer goods and services.
What does CPI mean?
A measure tracking price changes for a basket of consumer goods and services. Professionals may calculate, document or apply this concept differently depending on the transaction, accounting method, lender policy and governing documents. Borrowers should confirm the precise definition used in any term sheet or agreement.
CPI in context
Investors monitor CPI releases for signals about inflation.
Why it matters in financing
CPI can influence how a lender, investor or advisor evaluates risk, pricing, structure, repayment capacity or transaction economics. It should be considered together with the complete financial picture rather than used alone.
Related economics terms
Educational information only. This definition is general, may not match a particular lender or contract, and is not financial, accounting, tax or legal advice.