Monday, 2 December 2013

Computation of the Daily CPI in Turkey

Computation of the Daily CPI in Turkey

The Daily CPI is a lagged, daily interpolation of the monthly published CPI. 

All countries issuing government capital inflation-indexed bonds calculate Daily CPIs. Daily CPIs can be one to four month lagged, daily interpolations. 

Turkey uses a three-month lagged daily interpolation of its monthly published CPI.

Computation of the Daily CPI in Turkey

The Turkish Daily CPI is available HERE. (Click on Reference Indices under 

CPI Indexed Government Bonds)

Turkey can use the above Daily CPI to implement Capital Maintenance in Units of Constant Purchasing Power in terms of a Daily CPI during low inflation as authorised in IFRS in the Conceptual Framework (2010), Par. 4.59 (a) which states:

"Financial capital maintenance can be measured in either nominal monetary units or units of constant purchasing power." 

CMUCPP in terms of a Daily CPI would automatically maintain the constant purchasing power of capital (equity) constant for an indefinite period of time - ceteris paribus - in all entities that at least break even in real value at all levels of inflation and deflation.

Nicolaas Smith

Copyright (c) 2005-2013 Nicolaas J Smith. All rights reserved. No reproduction without permission.

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