YearonYear InflationIndexed Swap
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The YearonYear InflationIndexed Swap (YYIIS) is a standard derivative product over Inflation rate. The underlying is a single Consumer price index (CPI).
It is called Swap because each year there is a swap of a fixed amount against a floating amount. But in reality only a one way payment is made (fixed amount  floating amount).
Detailed flows[edit]
 Each year, at time
 Party B pays Party A the fixed amount
 Party A pays Party B the floating amount
where:
 K is the contract fixed rate
 N the contract nominal value
 M the number of years corresponding to the deal maturity
 i the number of years (0 < i <= M)
 is the fixedleg year fractions for the interval [Ti−1, Ti]
 is the floatingleg year fractions for the interval [Ti−1, Ti]
 is the start date
 is the time of the flow i
 is the maturity date (end of the swap)
 is the inflation at start date (time )
 is the inflation at time of the flow i (time )
 is the inflation at maturity date (time )