The specific content is included in the encyclopedia. Let me give you a simplified example. We assume that CPI only includes the prices of pork and TV sets, which account for 40% and 60% of CPI respectively.
If pork 10 yuan was a kilo last month, a TV set 1000 yuan, but pork1yuan a kilo this month, the price of a TV set 1200 yuan.
That is, the price of pork rises 10% and the price of TV sets rises by 20%, then the CPI increase this month = 10%×0.4(40% ratio) +20%×0.6(60% ratio) = 16%.
CPI actually measures how much the monthly living cost of ordinary people has increased (calculated by monthly CPI).
(2)PPI, similar to CPI. CPI measures the price increase of things purchased by ordinary individuals, such as the average increase of pork, cabbage and household appliances. And PPI measures the price of something that the enterprise has just left the factory, or the price of TV sets:
The ex-factory price of TV sets (wholesale price sold by manufacturers to sellers) increased by 10% this month compared with last month, which was included in PPI.
The price of TV sets in shopping malls (the price that sellers sell to you) has increased by 10% this month compared with last month. Included in CPI.
(Note: PPI includes three types, which can be found in the encyclopedia)
(3)m 1 and M2 have different opinions in different countries. Let's start with China's and define it yourself:
M 1 basically refers to the money that may be spent at any time. When the flowers go out, there is no need to go through any formalities. It is said that it can be taken out immediately. For example, cash and the money (current account) you deposit in the bank card can be taken out in the next second or swiped out or transferred out, which is very mobile.
M2 includes all of M 1, as well as other money that cannot be easily taken out and spent immediately, such as time deposit. If you want to use this part of the money, you may have to go through some formalities, such as changing your fixed account into a current account at the bank counter before you can use it. In other words, some of M2' s currencies are illiquid and cannot be converted into consumption immediately.
M 1 reflects the amount of money that can be directly used to buy things, and M2 reflects the amount of money that can be used to buy things (directly and indirectly).
(4) As for the relationship between these data, in short:
Both CPI and PPI reflect the level of inflation, that is, how much commodity prices have risen in life, one reflecting individuals and the other reflecting enterprises;
Inflation is ultimately a monetary phenomenon-this is what Friedman said, monetarism;
In other words, if there is more money, prices will go up.
M 1 and M2 are more, indicating that there is more domestic money;
With more money, people want to buy more things, which leads to short supply, rising prices, inflation, CPI and PPI.