What Is CPI?
CPI: Consumer Price Index, abbreviated as CPI, is a price change indicator that reflects the price of products and services related to residents' lives. It is usually used as an important indicator to observe the level of inflation.
If the consumer price index increases too much, it shows that inflation has become an unstable economic factor. The central bank will have the risk of tightening monetary policy and fiscal policy, which will lead to uncertain economic prospects.
Therefore, the excessive increase in the index is often not welcomed by the market.
Generally speaking, when the increase of CPI>3% is called INFLATION, it is inflation, and when CPI>5% increases, it is severe inflation.
Please note: if you eat pork prices rose by 100%, but the national CPI rose by only 5%, don't be surprised to say that the price of other commodities, including bulk trade goods, is relatively small.
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