China's CPI composition and the weight of each part:
1, food 34%;
2, entertainment, education and cultural goods and services 14%;
3, housing 13%;
4, transportation and communication 10%;
5, health care personal goods 10%;< /p>
6, clothing 9%;
7, household equipment and maintenance services 6%;
8, tobacco, alcohol and supplies 4%. China's CPI composition weight system of food accounted for 34% of its detailed composition: grain 33.23%, meat 25.5%, vegetables 11.53%, aquatic products 9.51%, fruits 6.91%, sugar 4.3%, fats and oils 2.55%, eggs 1.34%.
The specific purchases of the CPI in the United States are:
1. Housing, weighted at 42%;
2. Transportation, weighted at 17%;
3. Food and Beverage, weighted at 15%;
4. Pharmaceuticals, weighted at 7%;
5. Recreation, weighted at 6%;
6. Education and Communication, weighted is 6%;
7. Clothing, weighted at 4%;
8. Other, weighted at 3%.
I, CPI role:
1, measure of inflation (deflation). CPI is an important indicator of inflation. Inflation is a general and sustained rise in the price level. the CPI can be at a certain level to illustrate the severity of inflation;
2, national economic accounting. In national economic accounting, a variety of price indices are needed. Such as the consumer price index (CPI), producer price index (PPI) and the GDP deflator, accounting for GDP, so as to remove the impact of price factors.
3. Contractual indexing adjustments. For example, in salary and compensation negotiations, because employees hope that salary (nominal) growth can be equal to or higher than the CPI, and hope that nominal salaries will be automatically adjusted with the rise of the CPI. The timing of the adjustment is usually after inflation occurs, and the magnitude is lower than the actual inflation rate.
4. Reflecting changes in the purchasing power of money: The purchasing power of money refers to the amount of consumer goods and services that can be purchased per unit of money. Consumer price index rose, the purchasing power of money is down; the opposite is up. The inverse of the consumer price index is the purchasing power of money index.
5. Reflecting the impact on workers' real wages: an increase in the CPI means a decrease in real wages, and a decrease in the CPI means an increase in real wages. Therefore, the consumer price index can be used to convert nominal wages into real wages.
6. The impact of CPI on the stock market: In general, when prices rise, stock prices rise; when prices fall, stock prices fall.
The main impact of the CPI
The CPI is a lagging data, but it is often an important reference indicator of the market economic activity and the government's monetary policy. CPI stability, full employment and GDP growth are often the most important socio-economic goals. However, from the perspective of China's reality, the stability of the CPI and its importance is not as developed countries believe that "there is a certain authority, the market's economic activity will be adjusted according to the changes in the CPI".