CPI, the abbreviation of consumer price index, is a macroeconomic indicator reflecting the price changes of consumer goods and services purchased by households and one of the main indicators to measure inflation. 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).
The combination of CPI and employment situation report (non-agricultural) has become another hot economic indicator that has been carefully studied in the financial market, because inflation affects everyone, it determines the cost of consumers to buy goods and services, affects the operating cost of enterprises, greatly destroys the investment of individuals or enterprises, and affects the quality of life of retirees. Moreover, the prospect of inflation is conducive to the establishment of labor contracts and the formulation of government fiscal policies.
Consumer price index measures the average change of retail prices of more than 200 kinds of goods and services over a period of time. Therefore, the CPI index will continue to expand, which will increase local prices.