XSLT is a functional language and among other things this means that variables in XSLT are immutable and once they have been defined their value cannot be changed.
Here is how the same effect can be achieved in XSLT:
<xsl:stylesheet version="1.0"
xmlns:xsl="http://www.w3.org/1999/XSL/Transform">
<xsl:output omit-xml-declaration="yes" indent="yes"/>
<xsl:strip-space elements="*"/>
<xsl:template match="/">
<posts>
<xsl:for-each select="data/posts/entry">
<xsl:variable name="i" select="position()" />
<xsl:copy>
<xsl:value-of select="concat('$i = ', $i)"/>
</xsl:copy>
</xsl:for-each>
</posts>
</xsl:template>
</xsl:stylesheet>
when this transformation is applied on the following XML document:
<data>
<posts>
<entry/>
<entry/>
<entry/>
<entry/>
<entry/>
</posts>
</data>
the result is:
<posts>
<entry>$i = 1</entry>
<entry>$i = 2</entry>
<entry>$i = 3</entry>
<entry>$i = 4</entry>
<entry>$i = 5</entry>
</posts>
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