1.CPI rises and PPI rises, which means inflation rises and economic growth accelerates. If the increase is too large, it will lead to high inflation, which will lead to economic recession;
2. The decline of 2.CPI and PPI means that the economic development is slowing down. If the decline is too large, it will lead to deflation and the economy will fall into recession;
3.CPI rises and PPI falls, which means that corporate profits increase and the economy enters an expansion period.
4. The decrease of 4.CPI and the increase of PPI mean that the profits of enterprises are reduced and the economy is in danger of recession.
1.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 that changes with time in a specific period, and is used to reflect the changes in the price level of consumer goods and services purchased by households. CPI is an important macroeconomic indicator reflecting the changes in the price level of consumer goods and services related to residents' lives, and it is also an important indicator for macroeconomic analysis and decision-making and national economic accounting. Generally speaking, the level of CPI directly affects the introduction and intensity of national macro-control measures, such as whether the central bank adjusts interest rates and deposit reserve ratio. At the same time, the level of CPI also indirectly affects the changes of capital markets (such as stock market, futures market, capital market and financial market).
2. Producer price index (PPI) is an index to measure the trend and degree of ex-factory price changes of industrial enterprises, an important economic indicator to reflect the price changes in the production field in a certain period, and an important basis for formulating relevant economic policies and national economic accounting. Producer price index (PPI) is different from CPI, and its main purpose is to measure the total cost of purchasing a basket of goods and services. Because enterprises will eventually transfer their expenses to consumers in the form of higher consumer prices, it is generally believed that the change of producer price index is useful to predict the change of consumer price index. From 2065438 to September 2007, the national producer price (ppi) increased by 6.9% year-on-year and 1.0% month-on-month.