What does rising CPI mean? What is the relationship between the CPI price index and rising prices?

CPI is the abbreviation of consumer price index (consumer price index). The consumer price index is a macroeconomic indicator that reflects the changes in the price level of consumer goods and services generally purchased by households. Generally, market economy countries believe that CPI at 2-3% is within the acceptable range. This article focuses on what the rise in CPI means, and the relationship between the CPI price index and rising prices.

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What does rising CPI mean?

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CPI is an index that measures the changes in the overall price level in the market. A rise in the CPI means inflation, whereas a fall in the overall price level means deflation. The price index is an indicator used to measure inflation or deflation in the economy. If the price index rises too much, it indicates that inflation has become a factor affecting social and economic instability, and the central bank will have a policy of tightening monetary policy and promulgation of related fiscal policies, which will have a certain impact on social and economic development. Therefore, an increase in the index tends to have an impact on the economy.

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The price index is a macroeconomic indicator that can represent an economy. For example, if the price index rises by 25% within six months, it means that the cost is increasing and the value of money is depreciating. 100 yuan half a year ago can only buy 75 yuan of items or consumption now.

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CPI price index and rising prices

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The English abbreviation of the Consumer Price Index (CPI) is CPI, which measures the consumer price level; while the price is the overall price level, including the price index in all aspects. Price increases can be calculated based on CPI.

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CPI is a price change indicator that reflects the prices of goods and services related to residents' lives. Price is the overall price level, while CPI is the consumer price index, which is the most important measure of price. aspect. Another measure of prices is the PPI (Producer Price Index), which mainly measures production aspects such as raw materials and transportation costs.

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CPI=(The value of a set of fixed commodities calculated at the current price / the value of a set of fixed commodities calculated at the base period price) × 100

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If in 1995 the average household in a certain country spent 800 yuan per month to purchase a group of commodities, and in 2000 the cost of purchasing this group of commodities was 1,000 yuan, then the consumer price index of the country in 2000 is (with 1995 as the base period) CPI=1000/800×100=125, which means an increase of 25%.

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Regarding the issue of CPI, this article introduces what the rising CPI means, and what is the relationship between the CPI price index and rising prices. In a word, the most direct manifestation of CPI rise is price rise, which means that the purchasing power of currency depreciation decreases, but at the same time, the income level does not increase accordingly, and people's living pressure will increase. The most obvious for the stock market is that consumer stocks have benefited.