I'm trying to get my head around how inflation really affects index trackers. I've been looking at this question, but somehow misses the point I want (How To Account For Inflation Over Historical Data).
Lets take FTSE ALL UK index tracker and UK inflation as an example: Would it make sense to adjust the FTSE ALL against the inflation measured during the same period to be able to visualise the real FTSE growth? If it make sense, how would you do it exactly? Would it be as straight forward as divide the tracker value per inflation value?
Just to make myself clear, the idea behind is to remove the growth component in the tracker due to inflation.