Consumer Price Index (CPI)

A system for calculating the change of prices over time.

The system used to determine how prices fluctuate over time is known as the CPI, or Consumer Price Index. This system aids in establishing the true value of salaries and pensions, thereby allowing for price adjustments and a reduction in monetary volume to reflect changes in real value.

Because of the consumer price index, a change in liquidity can affect the cryptocurrency price while also containing inflation; more volatility and the price will suffer. Bitcoin’s price continues to fall in the face of high inflation and a very limited liquidity ecosystem.