4 thoughts on “What does CPI mean? What is the reason for the continuous rise?”
Ruth
That is, the consumer price index (), the English abbreviation is CPI, is an indicator of price changes that reflect the product and labor price statistics related to the life of residents, and is usually used as an important indicator to observe the level of inflation. If the consumer price index rises too much, it shows that inflation has become a factor in economic instability, and the central bank will have the risk of tightening monetary and fiscal policies, causing unclear economic prospects. Therefore, the increase in the index is often not welcomed by the market. For example, in the past 12 months, the consumer price index has risen by 2.3 %, which means that the cost of living has increased by an average of 2.3 % from average 12 months ago. When the cost of life increases, your money value decreases. In other words, a 100 yuan banknotes received a year ago can only buy goods and services worth 97.70 yuan today. Generally speaking, when CPI> 3%increases, we call inflation, that is, inflation; and when CPI> 5%increase, we call him a Series Inflace, that is, severe inflation in China ’ Medical care and personal supplies, transportation and communications, entertainment education cultural supplies and services, residence, miscellaneous goods and services, but in recent years, the public consumption has the largest proportion and the most powerful consumer expenditure project. In CPI, such as people's education consumption, medical insurance, housing consumption, etc. In other words, although the CPI is rising, due to statistics, the inflation rate is actually higher than that of numbers! Inned to adopt
The article is relatively long and comprehensively explained about all the questions about CPI. You can see what is the first two CPIs? The price change that reflects consumers paying goods and labor services is also a tool to measure the level of inflation, which changes in the form of expression. There are eight major categories of the main commodities that constitute the indicator in the United States, including: food, wine and drinks; residential; clothing; education and communication; transportation; medicine health; entertainment; other goods and services. In the United States, the residents' consumption index is announced by the Labor Statistics Bureau every month, and there are two different consumer price indexes. The first is the consumer price index of workers and staff, referred to as CPI-W. The second is the consumer price index of urban consumers, referred to as CPI-U. The significance of the CPI price index index is very important and inspiration. It must be carefully grasped, because sometimes the indicator is rising, the currency exchange rate is better, and sometimes the opposite. Because the level of consumer price index shows the ability of consumers to buy and reflect the economic prosperity status. If the index falls and reflects the economic recession, it will inevitably be unfavorable to the currency exchange rate trend. But if the consumer price index rises, is the exchange rate must be good? Not necessarily, it is necessary to see how the consumer price index rises. If the index rises mild, it means that the economy is stable, and of course it is beneficial to the country's currency, but if the index rises too much, it will have a bad effect. , It is bound to be unfavorable to the country's currency. If the impact on interest rates is considered, the impact of this indicator on foreign exchange rates is more complicated. When the consumer price index of a country rises, it shows that the country's inflation rate rises, that is, the purchasing power of the currency weakened. According to the theory of purchasing power parity, the country's currency should be weakened. On the contrary, when the consumer price index of a country decreases, it shows that the country's inflation rate has declined, that is, the purchase power of currencies rises, and according to the theory of purchasing power parity, the country's currency should be strengthened. However, because each country is the first task to control inflation, and the rise in inflation has also brought the opportunity to rise in interest rates, so it is good for the currency. The policy of lowering the inflation rate can lead to the effect of liquid liquor, which is a common phenomenon in Latin American countries. Reference materials: Finance.icxo/htmlnews/2010/05/12/1411447_0
PPI is the price index of production data, which reflects market price changes from the perspective of producers. If the PPI is rising, it means that the production cost of enterprises is high. CPI is the consumer price index, which mainly reflects the change of the total price level from the perspective of consumer. If the CPI is rising, it means that the residents have more currencies paid for the same thing. Main differences: PPI reflects the changes in the total level of "production raw materials" purchased by the enterprise, and CPI is a change in the total level of "consumer goods and services" purchased by residents. PPI is the price index of production data, which reflects market price changes from the perspective of producers. If the PPI is rising, it means that the production cost of enterprises is high. CPI is the consumer price index, which mainly reflects the change of the total price level from the perspective of consumer. If the CPI is rising, it means that the residents have more currencies paid for the same thing. Main differences: PPI reflects the changes in the total level of "production raw materials" purchased by the enterprise, and CPI is a change in the total level of "consumer goods and services" purchased by residents. Main contact: PPI reflects the price of upstream products. If PPI rises, then the company will try to pass the cost of rising to consumer goods, resulting in the rise of CPI. But it is not necessarily. If it is a buyer's market, the cost is not easy to pass, and companies can only sacrifice profits. Or the state controls the price of consumer goods, such as gasoline. The rise of PPI cannot be transmitted to CPI. Main contact: PPI reflects the price of upstream products. If PPI rises, then the company will try to pass the cost of rising to consumer goods, resulting in the rise of CPI. But it is not necessarily. If it is a buyer's market, the cost is not easy to pass, and companies can only sacrifice profits. Or the state controls the price of consumer goods, such as gasoline. The rise of PPI cannot be transmitted to CPI.
That is, the consumer price index (), the English abbreviation is CPI, is an indicator of price changes that reflect the product and labor price statistics related to the life of residents, and is usually used as an important indicator to observe the level of inflation. If the consumer price index rises too much, it shows that inflation has become a factor in economic instability, and the central bank will have the risk of tightening monetary and fiscal policies, causing unclear economic prospects. Therefore, the increase in the index is often not welcomed by the market. For example, in the past 12 months, the consumer price index has risen by 2.3 %, which means that the cost of living has increased by an average of 2.3 % from average 12 months ago. When the cost of life increases, your money value decreases. In other words, a 100 yuan banknotes received a year ago can only buy goods and services worth 97.70 yuan today. Generally speaking, when CPI> 3%increases, we call inflation, that is, inflation; and when CPI> 5%increase, we call him a Series Inflace, that is, severe inflation in China ’ Medical care and personal supplies, transportation and communications, entertainment education cultural supplies and services, residence, miscellaneous goods and services, but in recent years, the public consumption has the largest proportion and the most powerful consumer expenditure project. In CPI, such as people's education consumption, medical insurance, housing consumption, etc. In other words, although the CPI is rising, due to statistics, the inflation rate is actually higher than that of numbers!
Inned to adopt
The article is relatively long and comprehensively explained about all the questions about CPI. You can see what is the first two CPIs? The price change that reflects consumers paying goods and labor services is also a tool to measure the level of inflation, which changes in the form of expression. There are eight major categories of the main commodities that constitute the indicator in the United States, including: food, wine and drinks; residential; clothing; education and communication; transportation; medicine health; entertainment; other goods and services. In the United States, the residents' consumption index is announced by the Labor Statistics Bureau every month, and there are two different consumer price indexes. The first is the consumer price index of workers and staff, referred to as CPI-W. The second is the consumer price index of urban consumers, referred to as CPI-U. The significance of the CPI price index index is very important and inspiration. It must be carefully grasped, because sometimes the indicator is rising, the currency exchange rate is better, and sometimes the opposite. Because the level of consumer price index shows the ability of consumers to buy and reflect the economic prosperity status. If the index falls and reflects the economic recession, it will inevitably be unfavorable to the currency exchange rate trend. But if the consumer price index rises, is the exchange rate must be good? Not necessarily, it is necessary to see how the consumer price index rises. If the index rises mild, it means that the economy is stable, and of course it is beneficial to the country's currency, but if the index rises too much, it will have a bad effect. , It is bound to be unfavorable to the country's currency. If the impact on interest rates is considered, the impact of this indicator on foreign exchange rates is more complicated. When the consumer price index of a country rises, it shows that the country's inflation rate rises, that is, the purchasing power of the currency weakened. According to the theory of purchasing power parity, the country's currency should be weakened. On the contrary, when the consumer price index of a country decreases, it shows that the country's inflation rate has declined, that is, the purchase power of currencies rises, and according to the theory of purchasing power parity, the country's currency should be strengthened. However, because each country is the first task to control inflation, and the rise in inflation has also brought the opportunity to rise in interest rates, so it is good for the currency. The policy of lowering the inflation rate can lead to the effect of liquid liquor, which is a common phenomenon in Latin American countries. Reference materials: Finance.icxo/htmlnews/2010/05/12/1411447_0
PPI is the price index of production data, which reflects market price changes from the perspective of producers. If the PPI is rising, it means that the production cost of enterprises is high. CPI is the consumer price index, which mainly reflects the change of the total price level from the perspective of consumer. If the CPI is rising, it means that the residents have more currencies paid for the same thing. Main differences: PPI reflects the changes in the total level of "production raw materials" purchased by the enterprise, and CPI is a change in the total level of "consumer goods and services" purchased by residents. PPI is the price index of production data, which reflects market price changes from the perspective of producers. If the PPI is rising, it means that the production cost of enterprises is high. CPI is the consumer price index, which mainly reflects the change of the total price level from the perspective of consumer. If the CPI is rising, it means that the residents have more currencies paid for the same thing. Main differences: PPI reflects the changes in the total level of "production raw materials" purchased by the enterprise, and CPI is a change in the total level of "consumer goods and services" purchased by residents. Main contact: PPI reflects the price of upstream products. If PPI rises, then the company will try to pass the cost of rising to consumer goods, resulting in the rise of CPI. But it is not necessarily. If it is a buyer's market, the cost is not easy to pass, and companies can only sacrifice profits. Or the state controls the price of consumer goods, such as gasoline. The rise of PPI cannot be transmitted to CPI. Main contact: PPI reflects the price of upstream products. If PPI rises, then the company will try to pass the cost of rising to consumer goods, resulting in the rise of CPI. But it is not necessarily. If it is a buyer's market, the cost is not easy to pass, and companies can only sacrifice profits. Or the state controls the price of consumer goods, such as gasoline. The rise of PPI cannot be transmitted to CPI.
The main reason for the consumer price index is the rise in food prices