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    Consumer Price Index

    2010/10/29 16:52:00 82

    Consumer Price Index

      

    Consumer price index

    (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 economic instability factor, and the central bank will have tight money.

    policy

    And the risk of fiscal policy, which will lead to uncertainty in the economic outlook.

    Therefore, the excessive increase in the index is often unacceptable.

    market

    Welcome.

    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 2.3% over 12 months ago.

    When the cost of living rises, the value of your money decreases.

    That is to say, a 100 yuan note received a year ago can only buy 97.70 yuan worth of goods and services today.

    Generally speaking, when CPI>3% increases, we call it INFLATION, which is inflation. When CPI>5% increases, we call him SERIOUS INFLATION, which is a serious inflation.

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