5 thoughts on “What does CPI and PPI mean?”

  1. 1. CPI
    1, CPI is the consumer price index (Consumer Price Index). Important indicators.
    2. The statistical survey of consumer consumer prices is the final price of social products and service projects. On the one hand, it is closely related to the lives of the people, and at the same time, it also has an important position in the entire national economic price system.
    3. It is an important indicator of economic analysis and decision -making, total price monitoring and regulation, and national economic accounting. The rate of change reflects the degree of inflation or tightening to a certain extent. Generally speaking, the price, the comparison of changes, and the continuous rise are considered inflation.

    . PPI
    PPI, also known as producer price index: The main purpose of the producer price index is to measure the price change of various products at different production stages.
    three, the difference between PPI and CPI
    1. According to the price of price conduction, PPI has a certain impact on CPI. PPI reflects the price level of production links, and CPI reflects the price level of the consumption link. The fluctuation of the overall price level generally appears in the production field, and then spreads towards the downstream industry through the industrial chain, and finally affects consumer goods in the circulation field.
    2. The production path of the production of industrial materials as the production of industrial materials is the transmission path of industrial products to the CPI: from raw materials → production materials → living materials.
    3, because CPI includes not only consumer goods prices, but also service prices, CPI and PPI are not strictly corresponding in statistical caliber. Therefore, it is possible that the change of CPI and PPI is inconsistent in a certain period. However, CPI and PPI continue to be departing for a long time, which does not conform to the law of price conduction.
    4. If the price transmission occurs, the phenomenon of breaks from the occurrence is that the industrial market is in the buyer's market and the government's artificial control of the price of public products. At present, the price of industrial products that can be transmitted can be successfully completed (mainly the price of energy, coal, water and other energy raw materials), mainly the government's price adjustment range.
    The expansion information:
    cpi basic function
    1, measurement of inflation (currency tightening). CPI is an important indicator of inflation. Inflation is a general rise in prices. The height of the CPI can explain the severity of inflation at a certain level;
    2, the national economic accounting. In the national economic accounting, various price indexes are needed. Such as the consumer price index (CPI), the producer price index (PPI), and the GDP flat reduction index to calculate the GDP, thereby eliminating the impact of price factors.
    3, contract index adjustment. For example, in the salary and remuneration negotiations, because employees hope that salary (nominal) can grow equal or higher than CPI, hoping that the nominal salary will be automatically adjusted with the increase in CPI. The timing of its adjustment is usually lower than the actual inflation rate after inflation occurs.
    4. Reflecting the change of currency purchasing power: Monetary purchasing power refers to the number of consumer goods and services that unit currency can buy. The consumer price index rose, while the monetary purchasing power declined; otherwise, it rose. The countdown to the consumer price index is the monetary purchasing power index.
    5. The impact of reflection on the actual salary of employees: The increase in the consumer price index means a decrease in actual salary, and the decline in the consumer price index means the increase in actual salary. Therefore, the consumer price index can be used to transform the nominal salary into actual salary.
    6, CPI's impact on the stock market: Under normal circumstances, prices rose, stock prices rose; prices fell, and stock prices fell.
    Reference materials: Consumption Price Index (CPI) _ 百度 贴 吧 production price index (PPI) _ 百度 百 n

  2. CPI is the national consumer price index; PPI is an industrial producer's factory price index. If the consumer price index rises too much, it shows that inflation has become a factor in economic instability, and the central bank will have the risk of tightening monetary and fiscal policies, causing unclear economic prospects. The main purpose of the producer price index is to measure the price change of various products at different production stages.
    Extension information:
    1. The latest data released by the National Bureau of Statistics shows that the CPI rose 0.7%from the previous month and the increase of 0.4 percentage points from the previous month. From the data point of view, the large -scale high temperature and hot weather in the country affect the production and storage and transportation of agricultural products, which has indeed caused fresh vegetables, fresh fruits, eggs, meat, and dairy food prices to rise month -on -month. In addition, PPI rose 4.1%year -on -year, and the increase was narrowed for two consecutive months -
    2, on September 10, the National Bureau of Statistics released the National Resident Consumption Price Index (CPI) and industrial producers' factory price index ( PPI) Data. In August, CPI rose 2.3%year -on -year, and rose three consecutive months in a row; PPI rose 4.1%year -on -year, a year -on -year increase of two consecutive months.
    3, experts said that the steady rise of CPI in August is closely related to the rise in food prices. With the weakening of seasonal factors, food prices will not continue to rise, and in the future, CPI lacks a significant rebound driving force; PPI will gradually narrow the year -on -year increase.
    4, in August, CPI rose 2.3%year -on -year, an increase of 0.2 percentage points from the previous month, and the year -on -year increase was at the time of the year. The CPI rose 0.7%month -on -month, an increase of 0.4 percentage points from the previous month.
    5. It is worth noting that in August, Weifang, known as the national "vegetable basket", has suffered a rare rain and flood disaster in history. One of the regions. Many people are worried that the Shouguang flood will affect the market supply of vegetables and continue to increase the price of national vegetables.
    6. From the perspective of data, large -scale high temperature and hot weather in the country affects agricultural product production and storage and transportation, which has indeed caused fresh vegetables, fresh fruits, eggs, meat, and milk food prices to rise month -on -month.
    Reference information Source: China Economic Network -August CPI and PPI steadily rose

  3. The CPI is the consumer price index (Consumer Price Index). The English abbreviation is CPI, which is a price change indicator of the product and labor price statistics related to the life of residents. It is usually used as an important indicator to observe the level of inflation.

    PPI, also known as producer price index: The main purpose of the producer price index is to measure the price change of various products at different production stages.

    Generally speaking, the production of goods is divided into three stages: 1. The completion stage: the goods will not do any processing procedures at this point; second, the intermediate stage: the product needs to be further processed; 3. 3. Original stage: the goods have not been processed. PPI is an index that measures the change trend and degree of changes in industrial enterprise products. It is an important economic indicator reflecting the changes in the price change in the production field in a certain period. It is also an important basis for formulating economic policies and national economic accounting.

    In the law of conduction according to the price, PPI has a certain impact on the CPI. PPI reflects the price level of production links, and CPI reflects the price level of the consumption link. The fluctuation of the overall price level generally appears in the production field, and then spreads towards the downstream industry through the industrial chain, and finally affects consumer goods. The industrial chain can be divided into two: one is the production of industrial products as the production of raw materials, and there are raw materials → production materials → living materials. The other is the production of agricultural products as raw materials. There are agricultural production materials → agricultural products → food transmission. In China, in terms of the above two conduction paths, the current second, that is, the transmission of food to food is more fully transmitted. Since 2006, the rise in grain prices is the main factor that drives the rise of CPI. But the first one is that the transmission of industrial products to CPI is basically invalid. Because CPI includes not only consumer goods prices, but also service prices, CPI and PPI are not strictly corresponding in statistics, so it is possible to change the changes in CPI and PPI. CPI and PPI continue to be separated, which does not meet the law of price conduction. The main reason for the breakdown of the price transmission is that the industrial product market is in the buyer's market and the government's control of the price of public product prices.

    In different market conditions, there are two possible situations to transmit industrial products to the final consumer price: First, under the market conditions of the seller, the price of industrial products caused by rising costs (such as electricity, water, and coal of coal The rise in energy and raw materials) will eventually be smoothly transmitted to the price of consumer goods. The result is that the price of midstream and downstream products is stable, and may even continue to decline, and corporate profits are reduced. For some companies that are difficult to digest costs, they may face bankruptcy. The prices of industrial products that can be successfully completed (mainly the price of energy, coal, water and other energy raw materials) are currently mainly the government's price adjustment range. In the case of continued rising product prices (PPI), companies cannot smoothly pass the upstream costs, which will increase the final consumer product price (CPI), which will eventually lead to a reduction in corporate profits.

    cpi and ppi seriously inverted?

    Compared with PPI, CPI is a lagging indicator. However, PPI has a certain conduction effect on CPI. This conduction effect comes from two aspects: one is that changes in the factory price of living materials directly affect the changes in CPI; the other is that the change of the factory price of the raw materials directly causes the cost of raw consumer goods. Change indirectly affects CPI changes. For example, the price increase of oil prices will lead to the increase in the price of petrochemicals, and the price increase of petrochemicals has led to the increase in chemical fiber prices, which leads to rising textiles and clothing costs, thereby pushing up consumer goods prices. Therefore, in most cases, the direction of CPI and PPI is the same.

    The influence of the PPI affects the realization of the procurement cost of the company under the fact that the procurement cost of the enterprise must be restricted by various environmental factors, and the national policy's policy regulation of some key prices has a certain uncertainty. sex. In addition, due to the significantly different survey of PPI and CPI, PPI and CPIs are inconsistent. For example, due to the consumption structure, food prices have a large weight in my country's CPI composition, and the weight of food in PPI is relatively small, and energy and raw materials account for a large proportion. Differences even off.

    This phenomenon of PPI and CPI "scissors difference" (inverted) began in May 2008. In May, PPI rose 8.2%year -on -year, CPI rose 7.7%. PPI first overtaken CPI0.5 percentage points in the rise of this round of prices. In June, 1.7 percentage points were overtaken. In July, 3.7 percentage points were overtaken. In August Expand to 5.2 percentage points. CPI and PPI inverted showed that the gross profit margin of manufacturing enterprises has been further compressed, and the decline in corporate profits is difficult to see the inflection point in the short term, and the future performance is not optimistic.

  4. Explain the CPI -related knowledge of the economic common sense in the national civil servant exam
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  5. PPI is the price index of production data, which reflects market price changes from the perspective of producers.
    If PPI rises, it means that the production cost of enterprises is high. CPI is the consumer price index, which mainly reflects the change of the total price level from the perspective of consumer. If the CPI is rising, it means that the residents have more currencies paid for the same thing.
    Main differences: PPI reflects the change in the total level of "production raw materials" purchased by the enterprise, and CPI is a change in the total level of "consumer goods and services" that residents purchased by residents. Main connections: PPI reflects the price of upstream products. If PPI rises, then the company will try to pass the cost of rising to consumer goods, which will lead to the rise in CPI. But it is not necessarily. If it is a buyer's market, the cost is not easy to pass, and companies can only sacrifice profits. Or the state controls the price of consumer goods, such as gasoline. The rise of PPI cannot be transmitted to CPI.

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