Germany's Deutsche Bank has rolled out the DB Core US CPI Index, the first tradable index that tracks core inflation, designed to track the Core Consumer Price Index (CPI), which is tradable on an over-the-counter basis.
The Core CPI is widely used as a measure of inflation, which is transparent, rules-based and facilitates clients to obtain protection from inflation by excluding the volatile components of overall CPI, while reducing volatility risk.
Deutsche Bank Americas index research head Aram Flores said, "We expect this index to be a significant barometer for the industry and a more accurate measure than other tradable inflation strategies."
According to the bank, the DB Core US CPI Index represents the latest addition to the DBIQ Index family of benchmark indices.
The DBIQ Index family includes indices covering the global fixed income, FX, equities and commodities asset classes.
Deutsche Bank is an investment bank that has 100,000 employees in more than 70 nations throughout the world.