CN: Consumer Price Index

Tue Dec 08 19:30:00 CST 2015

Consensus Actual Previous
Y/Y % Change 1.4% 1.5% 1.3%
M/M % Change 0.0% -0.3%

November consumer price index was up 1.5 percent from a year ago after climbing 1.3 percent in October. For the year to date, the CPI was up 1.4 percent for the fourth month. The urban CPI was up 1.5 percent after 1.3 percent while the rural CPI was up 1.3 percent and 1.2 percent. The CPI was unchanged on the month.

Food prices were 2.3 percent higher after gaining just 1.9 percent the month before. Nonfood prices were up 1.1 percent after 0.9 percent. Transportation & communication prices declined 1.4 percent, the least that they have been down since May.

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.

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.