The purpose of compiling consumer price index is to understand the basic situation of price changes all over the country, analyze and study the impact of price changes on social economy and residents' life, meet the needs of governments at all levels to formulate policies and plans and carry out macro-control, provide reference and basis for national economic accounting, and is the basis for the state to issue price subsidies to residents.
Extended data
fundamental function
1, which measures inflation (deflation). CPI is an important indicator to measure inflation. Inflation is a general and sustained rise in the price level. The level of CPI can explain the severity of inflation to some extent;
2. National economic accounting. In national economic accounting, various price indexes are needed. Such as consumer price index (CPI), producer price index (PPI) and GDP deflator, to calculate GDP, thus eliminating the influence of price factors.
3. Contract indexation adjustment. For example, in salary negotiation, employees hope that the salary (nominal) increase is equal to or higher than CPI, and they hope that the nominal salary will be automatically adjusted with the increase of CPI. The timing of adjustment is usually after inflation and lower than the actual inflation rate.
Baidu encyclopedia -CPI index
What does cpi mean? Let's make the word cpi popular. For us, it may be more profound. The CPI index is a little high, so let's put it in layman's terms and understand it better. The following is what I mean by cpi for your reference!
What does cpi mean?
CPI is the abbreviation of consumer price index. Consumer price index (CPI) is a macroeconomic indicator that reflects the changes in the price level of consumer goods generally purchased by households. It is a relative number to measure the price level of a representative group of consumer goods and services over time, and is used to reflect the price level changes of consumer goods and services purchased by households.
Consumer price statistics survey the final price of social products and services, which is closely related to people's lives and occupies an important position in the whole national economic price system. It is an important indicator of economic analysis and decision-making, monitoring and regulation of the overall price level and national economic accounting. Its change rate reflects the degree of inflation or deflation to some extent. Generally speaking, an overall and sustained price increase is considered as inflation.
How to interpret CPI
I. Concept
Cpi (Consumer Price Index) is one of the data used by the government to measure inflation. Generally speaking, CPI is the percentage of commodity price increase in the market. Generally, market economy countries think that CPI is within the acceptable range of 2-3%, which of course depends on their CPI index and other data. Personally, it is not a good thing that CPI is too high. High-speed economic growth will increase CPI, but it is definitely not a good thing that the price index grows faster than the average income of the people, and it is difficult for the average wage to grow faster than 3-4%.
Second, the significance of CPI
CPI price index is very heavy. The teacher also said in class that the level of CPI directly affects the changes in the capital market and the macro-control of the country. And it is very enlightening, so we must take it seriously, because sometimes it is announced that the index is rising, the currency exchange rate is improving, and sometimes it is the opposite.
Third, how to interpret CPI?
The level of consumer price index shows the purchasing power of consumers and also reflects the prosperity of the economy. If the index falls, reflecting the economic recession, it is bound to be unfavorable to the currency exchange rate trend. But if the consumer price index rises, will the exchange rate be favorable? Not necessarily, it depends on the "increase" of the consumer price index. If the index rises moderately, it means that the economy is stable and upward, which is of course beneficial to the country's currency. But if the index rises too much, it will have a negative impact, because the price index is inversely proportional to purchasing power. The more expensive the price, the lower the purchasing power of the currency, which is bound to be unfavorable to the country's currency. If the impact on interest rate is considered, the impact of this indicator on foreign exchange rate is more complicated. When a country's consumer price index rises, it indicates the country's inflation.
When the inflation rate rises, the purchasing power of money decreases. On the contrary, when a country's consumer price index drops, it shows that the country's inflation rate drops, that is, the purchasing power of money increases. However, because all countries take controlling inflation as their primary task, rising inflation also brings opportunities for rising interest rates, which is beneficial to the currency. If the inflation rate is controlled and falls, the interest rate will also tend to fall.
Four, four categories
In addition, in fact, CPI has reflected the changes in consumer prices. Not including the price changes of commercial housing (assets) in CPI statistics does not mean that CPI does not reflect the price changes of housing (consumption). The changes in house prices in CPI are reflected in four categories:
1, building and decoration materials, mainly bricks and mortar, cement, chemical raw materials, etc.
2. Renting, mainly changes in rents of public houses and private houses.
3. Self-owned housing, mainly changes in housing loan interest rates and property fees. What needs to be pointed out here is that at present, some foreign countries reflect the price change of self-owned housing through the change of housing loan interest rate (the theoretical basis is that both self-owned housing and self-owned savings are paid in the form of house purchase funds, that is, your own housing exists in the form of money, and the price of house purchase funds is the loan interest rate, so the change of housing loan interest rate also reflects the price change of self-owned housing).
4. Price changes of water, electricity and fuel.
The influence of CPI on the stock market
Under normal circumstances, prices rise and stock prices rise; As the price falls, so does the share price. The impact of commodity prices on the stock market price is mainly manifested in the following four aspects:
1. Commodity prices are rising slowly, not by much. However, when the price rises faster than the loan interest rate, the value of the company's inventory goods will rise, because the product price rises faster than the loan cost. In this way, the company's profits will rise, and the stock price will also rise.
If the commodity price rises too much, the stock price will fall rather than rise accordingly. This is because the rising price leads to the rising production cost of the company, and the rising cost cannot be completely passed on through commodity sales, thus reducing the company's profit and stock price.
3. When the price rises and the commodity market is prosperous, sometimes when the stock plummets, people are keen on timely consumption, which makes the stock price fall; When the commodity market goes up and down, it becomes the best time to invest in stocks, which leads to the rise of stock prices.
4. The continuous rise in prices has strengthened the role of stock investors' awareness of protection, which has led investors to withdraw from the stock market and invest in movable property or real estate, such as real estate, precious metals and other items with strong value preservation, which has brought about a decrease in stock demand and led to a decline in stock prices.
During the economic crisis and economic recovery, CPI and stock index rose and fell together. The same is true during economic prosperity, but after excessive prosperity, during economic recession, the higher the CPI, the lower the stock index! For example, now, when CPI peaks in stages, stocks will dare to rise!
A slight and moderate rise will promote the stock market, but a vicious rise will hit the stock market, because the vicious rise will have a negative impact on listed companies, and the government will adopt a tight monetary policy, leading to the outflow of stock market funds.
CPI consumer price index, also known as consumer price index, is a price change indicator that reflects the prices of goods and services related to residents' lives, and is usually used as an important indicator to observe the level of inflation. Generally speaking, when CPI3% increases by 3%, it can be called inflation, that is, inflation; When the increase of CPI5% is called serious inflation, it is serious inflation.
Theoretically, there is no functional relationship between CPI and stock market ups and downs. But it can really affect the stock market through the supply and demand of funds. Under the loose monetary policy, the interest rate of bank deposits and loans is low, so the attractiveness of banks to social liquidity funds will be reduced, and the total amount of bank savings deposits will even show negative growth. Investment market areas such as stock market and real estate will attract liquidity, which in turn will drive up house prices and stock indexes. However, the stock index cannot keep rising. After excessive market liquidity, CPI will continue to rise. The state will intensify the adjustment of monetary and fiscal policies and implement tight macro-control policies. If the deposit reserve ratio of commercial banks is continuously raised and the interest rate is raised, the liquidity shortage will inevitably be transmitted to the stock market, and funds will flow out from the housing market and the stock market, leading to changes in stock indexes and house prices.
In the process of CPI rising, there are two points to note:
1. From the perspective of horizontal industry comparison, the continuous rise of CPI will trigger the structural adjustment of the stock market. In the past, China's inflation was mainly caused by excessive currency, but the excessive currency did not flow to all industries in a balanced way or at the same time, but first to powerful departments or industries. Therefore, some relatively active plates are likely to remain stable or upward for a period of time; Industries encouraged or protected by national policies will probably enter a new growth cycle; For the traditional industries restricted by the state, as well as the industry sectors that will be affected by the continuous increase of CPI and regulatory policies, which may lead to a decline in profits, the share price will fall.
2. From the different development periods of vertical CPI, the continuous rise of CPI also reminds stock market investors to be alert to asset price risks. In the early period of CPI rising (moderate inflation), the investment direction will turn to the high-return investment market such as the stock market. Hyperinflation will occur in the later period of CPI rise, which will lead to the increase of capital cost (enterprise loan cost), the decrease of profit and the increase of stock price-earnings ratio. As the stock market bubble gets bigger and bigger, the stock price will eventually fall, and its attraction to funds will gradually weaken. At the same time, with the continuous increase of bank interest rates, investors' desire to invest in stocks will decrease, and the funds circulating in the stock market will be withdrawn, which will lead to the decline of the stock index.
Historical data research shows that when inflation is moderate (CPI: 2%-5%), it will have little impact on the Shanghai Composite Index, and even accelerate the upward trend (such as the Shanghai Composite Index in 2007). In the period of moderate inflation, a small increase in commodity prices will stimulate corporate profits to some extent.
Increase, reach a reasonable small premium, and then have a positive impact on the stock market. When the CPI exceeds 5%, generally speaking, the Shanghai Composite Index is in a critical period, and it is unlikely to hit a new high or remain stable at the top, but the possibility of hitting a new low will increase. The last serious inflation in China was about 1993-1994. The poor performance of the Shanghai Composite Index during this period is obvious to all. When serious inflation occurs, the currency is extremely tight, corporate profits drop sharply, and the stock market is naturally depressed. There is no bull market in high inflation.
What does CPI mean, and what does its rise and fall mean? CPI is the abbreviation of consumer price index. Consumer price index (CPI) is a macroeconomic indicator that reflects the changes in the price levels of consumer goods and services generally purchased by households.
It is a relative number to measure the price level of a representative group of consumer goods and services over time, and is used to reflect the price level changes of consumer goods and services purchased by households.
The rise and fall of CPI represents the impact on the stock market.
Functional influence
1, which measures inflation (deflation). CPI is an important indicator to measure inflation. Inflation is a general and sustained rise in the price level. The level of CPI can explain the severity of inflation to some extent;
2. National economic accounting. In national economic accounting, various price indexes are needed. Such as consumer price index (CPI), producer price index (PPI) and GDP deflator, to calculate GDP, thus eliminating the influence of price factors.
3. Contract indexation adjustment. For example, in salary negotiation, employees hope that the salary (nominal) increase is equal to or higher than CPI, and they hope that the nominal salary will be automatically adjusted with the increase of CPI. The timing of adjustment is usually after inflation and lower than the actual inflation rate.
4. Reflect the change of currency purchasing power: Currency purchasing power refers to the quantity of consumer goods and services that can be purchased by unit currency. When the consumer price index rises, the purchasing power of money decreases; On the contrary, it will rise. The reciprocal of the consumer price index is the purchasing power index of money.
5. Reflect the impact on employees' real wages: the increase of consumer price index means the decrease of real wages, and the decrease of consumer price index means the increase of real wages. Therefore, the consumer price index can be used to convert nominal wages into real wages.
6. the impact of 6.CPI on the stock market: under normal circumstances, prices rise and stock prices rise; As the price falls, so does the share price.
What does CPI mean? CPI is the consumer price index.
Consumer price index (CPI) is a price change index that reflects the prices of products and services related to residents' lives, and is usually used as an important indicator to observe the level of inflation. China calls it the consumer price index. Consumer price index can be compiled in urban consumer price index and rural consumer price index according to urban and rural areas, and the national consumer price index can also be compiled according to the whole society.
In the United States, the main commodities that constitute this indicator are divided into seven categories, including: food, wine and beverage houses; Clothing; Transportation; Medical and health care; Entertainment; Other goods and services.
In the United States, the consumer price index is released by the Bureau of Labor Statistics every month, and there are two different consumer price indexes. The first is the consumer price index, or CPW for short. The second is the consumer price index (CPIU) of urban consumers.
Extended data:
CPI price index is very important and enlightening. Sometimes it is announced that the index is rising, the currency exchange rate is bullish, and sometimes it is the opposite. The consumer price index shows the purchasing power of consumers and also reflects the prosperity of the economy. If the index falls, it reflects the economic recession, which is bound to be unfavorable to the currency exchange rate trend;
But if the consumer price index rises, it depends on the increase of the consumer price index. If the index rises moderately, it means that the economy is stable and upward, which is beneficial to the country's currency;
But if the index rises too much, it will have a bad influence, because the price index is inversely proportional to purchasing power. The more expensive the price, the lower the purchasing power of the currency, which is bound to be unfavorable to the country's currency. If the impact on interest rate is considered, the impact of this indicator on foreign exchange rate is more complicated.
Baidu Encyclopedia-Consumer Price Index
How to calculate CPI index? CPI= ConsumerPriceIndex, which is the abbreviation of consumer price index.
3% of CPI3% is inflation.
CPI= (the value of a group of fixed commodities at current price/the value of a group of fixed commodities at base price) × 100.
If, last year, popsicles were sold at 1 yuan, this year, they were sold at 1.2 yuan. (1.2÷1) *100% =120% In other words, the popsicle price index has increased by 20%. In reality, the price obtained from a large number of consumer goods is compared with last year or last quarter.
The eight categories of commodities that make up CPI are: food, housing, alcohol, tobacco and supplies, clothing, transportation and communication, medical care and personal goods, household equipment and supplies and maintenance services, entertainment, sports and cultural goods and services.
What is CPI? The English abbreviation of consumer price index is cpicpi index, which is a price change index based on the prices of products and services related to residents' lives. Cpi index is usually used as an important indicator to observe the level of inflation. From 20 1 1 to 1, China's cpi began to calculate the price index series based on 20 10. CPI= (the value of a group of fixed commodities at current price/the value of a group of fixed commodities at base price) × 100%. If the monthly cost of buying a group of goods in a country is 800 yuan in 1995 and the cost of buying this group of goods in 2000 is 1000 yuan, then the consumer price index of this country in 2000 is (based on 1995) CPI =1000/800.
Cpi composition ratio CPI index: food 34%, entertainment, education and cultural services 14%, residence 13%, transportation and communication 10%, medical care 10%, clothing 9%, household equipment and maintenance 6%, alcohol and tobacco 4%;