Study the Consumer Price Index CPI of securities investment with cainiao

Every time I hear about how much CPI, the price is rising, things are more expensive, and inflation. So where is this CPI sacred? Economists always want to develop some special terms. What do they do so professionally? Q: Is it easy to understand so that those of us who have never learned this knowledge can understand it?

CPI (Consumer Price Index): refers to the consumer price index. It indicates the measure of the total cost of the items and services purchased by ordinary consumers. It is actually used to monitor changes in living expenses over time. When CPI rises, the average household needs to spend more money to maintain the same living standard, that is, the inflation we often say, and the money is even less valuable.

So how to calculate the Consumer Price Index CPI?

1. fixed basket: Determine which prices are most important to ordinary consumers.

2. Find the price: Find the price of each item and labor in the basket at each time point.

3. calculate the cost of this basket of items: use price data to calculate the cost of a basket of items and services in different periods.

4. Select the base year and calculate the index: Specify the year as the base year, that is, the benchmark for comparison between other years.

Consumer Price Index (CPI) = (the price of a basket of items and services in the current year)/the price of a basket of items per year x 100.

5. Calculate the inflation rate: the second year's inflation rate = (the second year's CPI-
First-year CPI)/first-year CPI * 100%

So what exactly is in the CPI basket?

1. Housing, I believe everyone knows this year, the house price is an astronomical number, the number is enough, it is difficult to take out the price of money. 2. Transportation. 3. Diet and drinks. 4. Education and Communication. 5. Medical care. 6. leisure activities. 7. Clothing. 8. Other items and services.

The consumer price index is not a perfect indicator of living expenses. First, he did not consider the ability of consumers to replace original items with items that have become cheaper over time. Second, he did not consider the increase in purchasing power of RMB 1 due to the introduction of new items. Third, the index was distorted by the absence of changes in the quality of goods and labor. CPI overestimated the real inflation.

In fact, we need to know what the CPI is. When the CPI increases, things will become more expensive.