CPI is equal to the consumer price index, which reflects the price changes of goods and services related to residents' lives. Of course, consumer goods include imports.

According to relevant data, from the end of 1999 to the end of 2007, the broad money issued by China increased from 12 trillion yuan to more than 37.7 trillion yuan, various loans increased from more than 9 trillion yuan to more than 25 trillion yuan, and foreign exchange reserves increased from 154675 billion US dollars to1528244. 1999 and the total GDP in 2007 were 8.9677 trillion yuan and 23.5 trillion yuan respectively, that is, the currency circulation was much larger than the total GDP. Therefore, it can be said that the rapid growth of bank loans and foreign exchange reserves has caused the excessive issuance of money, which is the main reason for inflation.