Inflation refers to the phenomenon that under the condition of currency circulation, the actual demand for money is less than the supply of money, that is, the actual purchasing power is greater than the supply of output, which leads to the devaluation of money and the continuous general rise of prices for a period of time. Its essence is that the total social supply is less than the total social demand (supply is far less than demand).

Second, Engel's law.

The proportion of food expenditure in total consumption expenditure shows a certain trend and changes with the change of income. The quantitative relationship and correlation between residents' income and food expenditure are revealed, and the influence of production development and income increase on living consumption is illustrated by the proportion of food expenditure to total consumption expenditure. As we all know, eating is the first need for human survival. When the income level is low, it will inevitably occupy an important position in consumption expenditure.

With the increase of income, when the food demand is basically met, the focus of consumption will begin to shift to clothing and use. Therefore, the poorer a country or family life, the greater the Engel coefficient; On the contrary, the richer the life, the smaller the Engel coefficient.

Three. Gross Domestic Product (GDP)

Gross domestic product (GDP) refers to the final result of the production activities of all residential units in a country (or region) in a certain period of time, and is usually considered as the best indicator to measure the national economic situation. Gross domestic product (GDP) is an important comprehensive statistical indicator in the accounting system, and also the core indicator in China's new national economic accounting system, which reflects the economic strength and market size of a country (or region).

Four. commodity research bureau

Since the beginning of the last century, CRB index is a futures price index compiled by the Commodity Research Bureau of the United States according to the prices of 19 basic economic sensitive commodities in the world market, which is usually referred to as RJ/CRB index for short. Also refers to the registered real estate manager, short for China Resources Snow Beer, Cramer World.

Verb (abbreviation of verb) CPW

The English translation of "the cost of each garment" is CostPerWear, or CPW for short. The specific algorithm is that if you spend 3200 yuan to buy a pair of Italian lambskin shoes and let your friends comment on your consumption, there will be two tit-for-tat opinions, one is value, and the other is too extravagant and unnecessary. Value and non-value, let's calculate CPW: this pair of shoes can be worn at least 350 times, and the cost of each use is: 3200÷350=9. 15 (yuan); If you wear them for another year, by the time they are scrapped, the CPW of these shoes will be 3,200 ÷ 715 = 4.48 (RMB). In other words, wearing a pair of leather shoes with a price as high as 3,200 RMB will cost less than that of 5 yuan.