In November, the national household consumption** fell by 05%, and both urban and rural consumption** decreased by 05%, food and non-food ** decreased by 09% and 04%, consumer goods and services** fell by 05% and 04%。
Food, tobacco and alcohol** decreased by 2 year-on-year2%, affecting the CPI household consumption ** index fell by about 064 percentage points.
The decline in livestock meat** has a significant impact on CPI. In November's data, livestock meat** fell by 192%, affecting the CPI to drop by about 072 percentage points, of which pork ** fell by 318%, affecting the CPI to drop by about 058 percentage points. This means that the decline in livestock meat will reduce the CPI, because livestock meat is part of the daily consumption of consumers, and its decline will reduce the cost of living for consumers, thus affecting the CPI.
The impact of a decrease in CPI may be in the following ways:
Declining consumer purchasing power: A decline in CPI means that consumers need to pay less money to buy the same amount of goods and services, which can lead to a decrease in consumer purchasing power, affecting their standard of living.
Slowing economic growth: A decline in CPI may also indicate a slowdown or sluggish economic growth, which may lead to problems such as reduced corporate production and rising unemployment, which can affect the economic development of the entire society.
Changes in interest rates: A decline in CPI may lead to a decrease in interest rates, as low interest rates can stimulate consumption and investment, boosting economic growth. However, this can also lead to a decrease in borrowing costs, which can affect the profitability and stability of banks.
Exchange rate changes: A decline in CPI may also lead to a depreciation of the national currency, as it can cause foreign investors to lose interest in domestic assets, leading to capital outflows. At the same time, this may also lead to the import of goods*** which will affect the domestic price level.
Increased social welfare spending: A decline in the CPI could lead to an increase in social welfare spending, as it would make it more important for the poor to need assistance to maintain their standard of living.
In conclusion, the impact of the decline in CPI is multifaceted, and its economic, social and policy implications need to be considered comprehensively.