A real interest rate is an interest rate that has been adjusted to remove the effects of inflation. Once adjusted, it reflects the real cost of funds to a borrower and the real yield to a lender ...

For this reason, investors are wise to understand and calculate what is called "the real rate of return," which is an investment's rate of return after adjusting for inflation. The real rate of ...

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So, if the BLS reports a CPI of 3 percent, under the old formula, you'd be looking at CPI closer to 6 percent. If you fail to grasp the concept of real interest rates, you can easily get fooled by ...