China Consumer Price Index (CPI) y/y

China Consumer Price Index (CPI) y/y reflects a change in the level of prices for consumer goods and services from household perspective, in the given month compared to the same month of the previous year.

The indicator provides a comprehensive reflection of the price levels. It covers consumer prices for 262 kinds of goods and services from eight basic categories, purchased by Chinese urban and rural residents. The categories include food (including tobacco and liquor), clothing, residence, household services, energy, transportation and communications, education, culture and recreation, health care. The index calculation does not include income taxes and investment items (stocks, bonds, antiques, etc.).

The index is calculated based on a survey of more than 88,000 prices collection units in 500 cities and counties in 31 Chinese provinces. This sample includes shopping malls, supermarkets, open fairs, internet e-commerce suppliers, i.e. retailers of various types and sizes.

The Consumer Price Index is one of the key economic indicators used to measure national inflation. The index shows how prices change from the consumer perspective. In other words, it allows estimating changes in the cost of living.

The index is used for the adjustment of wages and social payments. Also, CPI is used for adjusting the income tax structure and in the calculation of a real GDP.

CPI growth is seen as positive for yuan quotes.