Price Index Price index, which is the Consumer Price Index, in English called the consumer price index (CPI). ? Consumer price index (CPI, Consumer Price Index) is prepared countries in the world as a index that can be used to analyze the basic dynamics of the market price is the price the Government in formulating policies and an important basis for wage policy. Consumer Price Index (English name: consumer price index abbreviations: CPI) refers to a measure of the selected purchase price of a basket of consumer goods index. Calculated index, the weights of each commodity between 1982-1984 based on the consumer goods in urban share of the cost of living determined. It reflects and living-related products and services price index statistics out of the price changes are usually observed as an important indicator of inflation. If a major increase in the consumer price index shows that inflation has become a destabilizing factor in the economy, the central bank would tighten monetary policy and fiscal policy risk, leading to uncertain economic outlook. Therefore, excessive increase in the index are not in the market. For example, in the last 12 months, consumer price index rose 2.3%, it said the cost of living than the average of 12 months increased by 2.3%. When the cost of living increase, the value of your money will be decreased. That is, a year ago received a 100 yuan note, you can buy today is only 97.70 yuan worth of goods and services. Generally speaking, when the CPI&gt; 3% increase when we called INFLATION, that is inflation; and when the CPI&gt; 5% increase, we called him SERIOUS INFLATION, is inflation. Reflect the consumer price index is living-related products and services price index statistics out of price changes, usually observed as an important indicator of inflation. China called the consumer price index. Urban and rural consumer price index were compiled according to urban and rural consumer price index consumer price index, but also the whole society can prepare the consumer price index. Consumer Price Index to track the cost of living in a certain period to calculate inflation. If the consumer price index increase is too large, indicating that inflation has become an economic instability, the central bank cramping monetary and fiscal policy risk, resulting in uncertain economic outlook. Therefore, excessive increase in the index are not in the market. Consumer Price Index (Consumer Price Index), is a fixed basket of consumer goods price measure, mainly reflecting the consumers pay for goods and services price changes, is also a tool to measure the level of inflation, percentage change in the expression . In the United States constitute the major commodity indexes is divided into seven categories, including: food, wine and drinks housing; clothing; traffic; medical health; entertainment; other goods and services. In addition, the consumer price index is also mixed with some enjoyment of life costs, such as sports tickets and fine dining dinner. In the U.S., the Consumer Price Index published monthly by the Bureau of Labor Statistics, there are two different consumer price index. First, the workers and staff of the Consumer Price Index, referred to as CPW. Second, the consumer price index for urban consumers, known CPIU. ? Important indicators of consumer price index, and revealing, to be careful to grasp, because sometimes rise in the index published, currency exchange rate to improve, and sometimes the opposite. Because the level of the Consumer Price Index shows that the purchasing power of consumers, the economy, the economic situation is also reflected, if the index fell, reflecting the economic recession, it would be unfavorable currency exchange rates. However, if the Consumer Price Index, the exchange rate is definitely beneficial to good? Not, to look at the Consumer Price Index &quot;increases&quot; is. If the average were moderate, said economic stability up, of course, favorable currency of the country, but if the index is too large there are adverse effects increase as the price index and purchasing power is inversely proportional to the more expensive prices, lower purchasing power of money certainly detrimental to the country&#39;s currency. If you consider the impact on interest rates, then the indicator&#39;s influence on the exchange rate is more complicated. When a country&#39;s consumer price index rises, indicating that rising inflation in the country, that is, reduced purchasing power of money, according to purchasing power parity theory, the country&#39;s currency should be weaker. Conversely, when a country&#39;s consumer price index is declining, that the country&#39;s inflation rate has dropped, that is, increased purchasing power of money, according to purchasing power parity theory, the country&#39;s currency should be stronger. However, due to inflation in all countries is the primary task of rising inflation but also the opportunity to bring higher interest rates, so good but the currency. If the inflation rate under control and falling interest rates also tend to fall, it will benefit the region&#39;s currency was short. Policy of reducing the rate of inflation will lead to &quot;tequila effect&quot;, which is a common phenomenon in Latin America. ? 1. Reflect the state of inflation The extent of inflation is the inflation rate to reflect, and it demonstrates the continued rise in commodity prices during a given period range. Inflation generally expressed in the consumer price index. 2. To reflect changes in purchasing power of money Purchasing power of money is the unit of currency to buy the number of consumer goods and services. Consumer price index, decreased purchasing power of money; the contrary increased. Consumer price index is the reciprocal of the purchasing power index of the currency. 3. Reflect the real wages of workers Consumer Price Index increase means a reduction in real wages, consumer price index implies a decline in real wages increase. ? ? ?