## Infl Curve

**is a direct subtype of Valuation with functions Infl Curve Functions, keys Infl Curve keys and example object InfCrv that represents what practitioners understand under market available inflation rate information for all maturities.**

*Infl Curve*The inflation curve is required whenever cash flows linked to some Inflation Index - such as a specific Consumer Price Index - are present.

Its purpose is to provide the required forecasted future values of the

**that is compatible with a given set of market inputs.**

*Inflation Index*The represented

**can be of two types: Relative or YoY Rate**

*Inflation Index*A curve with the

**type can be constructed using market quotes of instruments representing either Zero Inflation Swap or Inflation Bond and essentially consists of properly interpolated zero inflation swap rates**

*Relative***out of which the raw inflation index**

*r***can be forecasted for any future time**

*I(T)***using the formula:**

*T*

*I(T)/I(T₀) = (1+r)ᴸ⁽ᵀ⁻ᵀᵒ⁾*where

**is the base date of the inflation curve as given by _Base Date and**

*T₀***is the year fraction of the time interval from**

*L(T-T₀)***to**

*T₀*

*T*A curve with the

**type can be constructed using market quotes of instruments representing Year-On-Year Inflation Swap and essentially consists of properly interpolated year-on-year inflation swap rates out of which the raw inflation index can be forecasted for any future time**

*YoY Rate*

*T*Note, a year-on-year inflation swap rate

**at time**

*YoY(T)***is defined as:**

*T*

*YoY(T) = I(T)/I(T-1Year) - 1*The inflation index is built for all possible times according to Build Method and interpolated according to Interp Method