Historical dynamics
Shows how much more expensive the “entry ticket” to capital became relative to the cost of living.
Hover (or tap) markers on the chart for context.Shading shows long-term macro regimes. Click a zone for a description.
Key events
1929 — Great Depression
Peak before the stock market crash: extreme decoupling of asset prices from fundamental values.
1971 — End of Gold Standard
Beginning of the fiat money era. IPI begins accelerated growth, especially in the real estate sector.
2000 — Dot-com Bubble
Sharp jump in IPI due to tech sector stocks. The correction reduced the index by 40%+.
2008 — Global Financial Crisis
IPI warned of a housing bubble. The IPI/monetary base spread reached record levels.
2020 — Pandemic and QE
Unprecedented $4+ trillion issuance led to an IPI jump. Assets became more expensive faster than goods.
2022 — Current Situation (2022–2026)
IPI rose amid AI companies, fiscal stimulus, and credit optimism. A notable increase in IPI relative to monetary aggregates.
What does IPI measure?
IPI is an investment inflation index for US household assets, denominated in US dollars (USD). It shows how much the investment basket (stocks, real estate, bonds and cash/T-Bills) is becoming more expensive — in other words, how much it really costs an investor to 'buy risk' today.
Who needs IPI?
Investors and CFOs living by 'cost of capital'. CPI measures consumption inflation, IPI measures asset entry inflation. The main question: is your wealth growing faster than assets are getting expensive?
How is it calculated?
Monthly chain Fisher price index. Basket of 4 blocks: Real Estate, Stocks (S&P 500), Cash & T-Bills, Bonds (UST 10Y). Weights are determined by US household asset structure (FRB Z.1).
IPI vs Monetary Base
In the long run, IPI is linked to the Net Monetary Base (NMB). Deviations are a regime indicator: the credit cycle takes IPI above the monetary anchor, while crises and deleveraging take it below.
How to use IPI
It is a risk-regime indicator. An index below the monetary 'anchor' is a phase of stress and discounts. Significantly above is a phase of overheating and compression of risk premiums.
Forecast and Yield
Based on Net Monetary Base and rate forecasts, an IPI scenario can be built and implied equity returns calculated. A tool for planning and stress tests.