CN: Consumer Price Index


Tue Oct 13 20:30:00 CDT 2015

Consensus Actual Previous
Y/Y % Change 1.8% 1.6% 2.00%
M/M % Change 0.1% 0.5%

Highlights
September consumer prices were up a disappointing 1.6 percent from a year ago against expectations of a 1.8 percent increase. The CPI edged up 0.1 percent from a month ago. Year to day, the CPI is up 1.4 percent for a second month. Urban prices were up 1.6 percent while rural prices gained 1.5 percent. Food prices were up 2.7 percent after jumping 3.7 percent in August while nonfood prices gained 1.0 percent.

Low inflation should allow Beijing, whose target for inflation is "around 3 percent" this year, to enact stimulus should it seek to support the economy.

Definition
The consumer price index measures the change in the price of goods and services purchased by consumers. The average price of various goods and services are sampled and then compared to the sampling a done year earlier.

Description
Consumer prices account for a majority of overall inflation, which is carefully monitored by investors worldwide. Investors worldwide monitor Chinese price changes closely. A pickup in inflation could mean an increase in interest rates is in the offing from the People's Bank of China while an easing could mean looser monetary policy. The monthly CPI is broken down by 8 categories with more detail available on the following day including aggregate information by urban and rural areas and provinces.

The CPI measures the change in the level of prices for a specified basket of goods and services normally purchased by urban and rural residents. Approximately 226 areas throughout the country are covered, including 80 counties and 146 cities. The current CPI is an annually chained Laspeyres price index and has been available since 2001. From 1978 to 2000, the index was compiled using current year weights for most items.