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Definition

<p style="text-align: justify;">The measure of the degree to which the <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">currency</span> of a country is losing <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">purchasing power</span> over time through <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">inflation</span>. In South Africa, the <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">Reserve Bank</span> has chosen the <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">CPI-X</span> as its target measure of inflation (it is different from the <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">CPI</span> in that it excludes <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">interest</span> and <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">mortgage bond</span> rates) and strives to keep this rate between 3% and 6% by using <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">monetary policy</span>.</p>