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    CPI Consumer Price Index

    2010/9/7 17:58:00 67

    CPI Consumer Market

      

    CPI

    That is, consumers.

    price

    The index (Consumer Price Index), abbreviated as CPI, is a price change indicator that reflects the price of products and services related to residents' lives. It is usually used as an important indicator to observe the level of inflation.

    If

    Consumer

    The rising price index indicates that inflation has become a factor of economic instability. The central bank will have the risk of tightening monetary policy and fiscal policy, resulting in uncertain economic prospects.

    Therefore, the excessive increase in the index is often not welcomed by the market.

    Generally speaking, when the increase of CPI>3% is called INFLATION, it is inflation, and when CPI>5% increases, it is severe inflation.


    Please note: if you eat pork prices rose by 100%, but the national CPI rose by only 5%, don't be surprised to say that the price of other commodities, including bulk trade goods, is relatively small.

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    PPI Producer Price Index

    PPI: Producer Price Index (PPI) is mainly used to measure the price changes of various commodities at different stages of production. It is usually used as an important indicator to observe the level of inflation as well as the consumer price index. For the foreign exchange market, the market is more concerned about the monthly change of the final product PPI.

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