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).
Extended data
Basic functions of cpi index
1, which measures inflation (deflation). CPI is an important indicator to measure inflation. Inflation is a general and sustained rise in the price level. The level of CPI can explain the severity of inflation to some extent;
2. National economic accounting. In national economic accounting, various price indexes are needed. Such as consumer price index (CPI), producer price index (PPI) and GDP deflator, to calculate GDP, thus eliminating the influence of price factors.
3. Contract indexation adjustment. For example, in salary negotiation, employees hope that the salary (nominal) increase is equal to or higher than CPI, and they hope that the nominal salary will be automatically adjusted with the increase of CPI. The timing of adjustment is usually after inflation and lower than the actual inflation rate.
4. Reflect the change of currency purchasing power: Currency purchasing power refers to the quantity of consumer goods and services that can be purchased by unit currency. When the consumer price index rises, the purchasing power of money decreases; On the contrary, it will rise. The reciprocal of the consumer price index is the purchasing power index of money.
5. Reflect the impact on employees' real wages: the increase of consumer price index means the decrease of real wages, and the decrease of consumer price index means the increase of real wages. Therefore, the consumer price index can be used to convert nominal wages into real wages.
6. the impact of 6.CPI on the stock market: under normal circumstances, prices rise and stock prices rise; As the price falls, so does the share price.
Baidu Encyclopedia-Consumer Price Index