Consumer Price Index (CPI) tracks the prices of a specified basket of consumer goods and services, providing a measure of inflation.

Derivative is a product whose value is derived from the value of one or more basic variables.

An underlying asset is the security on which a derivative contract is based upon.

The underlying asset can be:

A forward contract is a customized OTC contract between two parties, where settlement takes place on a specific date in the future at today's pre-agreed price.

Swaps are agreements between two parties to exchange cash flows in the future according to a prearranged formula.

Swaps can not be regarded as portfolios of forward contracts.

The commonly used swaps is/are:

Interest rate swaps entail swapping only the interest related cash flows between the parties in the same currency.

Currency swaps entail swapping both principal and interest between the parties, with the cash flows in one direction being in a different currency than those in the opposite direction.