CPI, the consumer price index, is a price change index calculated from the prices of goods and services related to residents' lives, and is usually used as an important indicator to judge the degree of inflation.
But many people don't understand the essence of CPI, just like there may be some misunderstandings about the consumer price index. Then CPI actually does not include investment goods and hidden consumption, but only represents the goods purchased by residents for consumption.
Moreover, CPI cannot represent the absolute price, and the growth rate is different.
With regard to CPI index, it is good that it is neither absolutely high nor absolutely low, but its function should be to make the whole national economy enter a virtuous circle, instead of binding and pulling each other.
CPI seems insignificant, but it is actually very important. It is known as the king of indicators for observing changes in consumer prices in the world.
The reason why CPI has gained such a high reputation is that it can accurately show the changing trend and trend of consumer prices in many existing data.
In addition, it is worth noting that the consumer price index is a lagging data, which is based on the instantaneous price situation.