Consumer price index (CPI) is a relative number that reflects the changing trend and degree of consumer goods and services purchased by urban and rural residents in a certain period, and it is the result of comprehensive summary calculation in urban consumer price index and rural consumer price index. Through this index, we can observe and analyze the impact of changes in retail prices of consumer goods and service items on the actual living expenses of urban and rural residents.

Consumer price index (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).

Main influence

CPI is a lagging data, but it is often an important reference index for market economic activities and government monetary policy. CPI stability, full employment and GDP growth are often the most important social and economic goals. However, from the reality of China, the stability and importance of CPI are not as authoritative as the developed countries think, and the economic activities of the market will be adjusted according to the changes of CPI.