What are CPI and PPI?

Updated on Financial 2024-03-21
4 answers
  1. Anonymous users2024-02-07

    1. CPI1, CPI is the Consumer Price Index (Consumer Price Index), abbreviated as CPI in English, which is a price change index that reflects the statistics of products and services related to residents' lives, and is usually used as an important indicator to observe the inflation level.

    2. The statistical survey of residents' consumption is the ultimate survey of social products and services, which is closely related to the lives of the people on the one hand, and also has an important position in the entire national economic system.

    3. It is an important indicator for economic analysis and decision-making, overall level monitoring and control, and national economic accounting. The rate of change reflects to some extent the degree of inflation or deflation. Generally speaking, inflation is considered to have occurred when prices are comprehensive, varied, and continuous.

    2. PPIPPI is also known as the Producer Price Index: The main purpose of the Producer Price Index is to measure the changes in various commodities at different stages of production.

    3. The difference and connection between PPI and CPI.

    1. According to the law of conduction, PPI has a certain impact on CPI. PPI reflects the level of production, and CPI reflects the level of consumption. The fluctuation of the overall ** level generally appears in the production field first, then spreads to the downstream industry through the industrial chain, and finally affects the consumer goods in the circulation field.

    2. The transmission path of industrial products as raw materials, that is, the transmission of industrial products to CPI is: the transmission of raw materials, means of production and means of subsistence.

    3. Since CPI includes not only consumer goods, but also services, CPI and PPI do not have a strict correspondence in terms of statistical caliber. Therefore, it is possible that the changes in the CPI and the PPI will not coincide at some point. However, CPI and PPI have been in a state of divergence for a long time, which is not in line with the law of conduction.

    4. If the phenomenon of transmission is broken, the main reason is that the industrial product market is in a buyer's market and the artificial control of public goods. At present, the industrial products that can be successfully transmitted (mainly energy, raw materials such as electricity, coal, and water) mainly belong to the scope of price adjustment.

  2. Anonymous users2024-02-06

    CPI stands for Consumer Price Index.

    The consumer price index is a measure of a fixed basket of consumer goods, which mainly reflects the change in the goods and services paid by consumers, and is also a tool to measure the level of inflation, expressed in the form of percentage changes. In the U.S., the main commodities that make up the indicator fall into seven categories, including: food, liquor, and beverages, housing; Clothes; Traffic; medicine and health; Amusement; Other goods and services.

    In the United States, the Consumer Price Index is published monthly by the Bureau of Labor Statistics and has two different consumer price indices. One is the Consumer Price Index for Workers and Employees, or CPW for short. The second is the Consumer Price Index for Urban Consumers, or CPIU for short.

    1. Producer Price Index (PPI): The main purpose of the Producer Price Index is to measure the changes in various commodities at different stages of production. Generally speaking, the production of goods is divided into three stages:

    1. Primitive stage: the goods have not been processed in any way; Second, the intermediate stage: the goods still need to be further processed; 3. Completion Stage:

    At this point, the goods will not be processed in any way.

  3. Anonymous users2024-02-05

    The full name of CPI is the Household Consumption Index, and the full name of PPI is the Production Index.

    CPI and PPI are often used to measure inflation, with the former denoting changes in consumer goods and services and the latter denoting changes in industrial goods. In most cases, the two will not move in sync, and there is even a possibility that they will be opposite, one positive and one negative. This often happens because of the transmission mechanism of goods and the difference in economic cycles.

    CPI is an important indicator of inflation. Inflation is a general and sustained rise in the price level. The level of the CPI can indicate the severity of inflation at a certain level.

    The impact of inflation on the US dollar is less clear. Often, in a healthy economic expansion, raising interest rates on the dollar makes the dollar more attractive. If the rise in interest rates comes mainly from the rise in inflation, it will hurt the dollar.

    Higher inflation hurts the value of dollar investments held by foreigners, so the continued rise in CPI has a negative impact on the dollar. Currency traders are also sensitive to the rest of the nuances.

    The production index is an index that measures the trend and degree of change in the factory products of industrial enterprises, is an important economic indicator that reflects the changes in the production field in a certain period, and is also an important basis for formulating relevant economic policies and national economic accounts. The Producer Price Index (PPI), unlike the CPI, is primarily intended to measure the total cost of a basket of goods and services purchased by a firm. Since firms eventually have to pass on costs to consumers in the form of higher consumption**, changes in the producer price index are generally considered useful for changes in the consumer price index.

    The producer index observes the trend and degree of change in the ex-factory products of industrial enterprises, which is an important economic indicator reflecting the changes in the production field in a certain period, and is also an important basis for formulating relevant economic policies and national economic accounts.

  4. Anonymous users2024-02-04

    CPI stands for Consumer ** Index and PPI stands for Producer Price Index. It is an important basis for formulating relevant economic policies and national accounts.

    Background of CPI and PPICPI is a measurement of a fixed basket of consumer goods, mainly reflecting the changes in consumer payment for goods and services, and is also a tool to measure the level of inflation.

    PPI is an index that measures the trend and degree of change in the factory products of industrial enterprises, is an important economic indicator that reflects the changes in the production field in a certain period, and is also an important basis for formulating relevant economic policies and national economic accounts.

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