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What does the CPI index rise mean?
CPI, or ConsumerPriceIndex, is a price change indicator that reflects the prices of products and services related to residents' lives, and is usually used as an important indicator to observe the level of inflation. If the consumer price index rises too much, it shows that inflation has become an unstable factor in the economy, and the central bank will risk tightening monetary and fiscal policies, leading to uncertain economic prospects. Therefore, the excessive rise of the index is often unpopular with the market. For example, in the past 12 months, the consumer price index rose by 2.3%, which means that compared with 12 months ago, the cost of living rose by 2.3% on average. When the cost of living goes up, the value of your money will go down. That is to say, a banknote of 100 yuan received a year ago can only buy goods and services worth 97.70 yuan today. Generally speaking, when the increase of CPI & gt3% is called inflation, it means inflation; When CPI & gt5% increases, we call it serious inflation, which means serious inflation.