Today we are going to talk about the latest November release from the National Bureau of StatisticsNational Consumer Consumption** Index (CPI).and industryProducer Factory** Index (PPI).data. These data may seem boring, but they are real factors in our daily lives. Let's take a closer look at the concepts of CPI and PPI.
Imagine you go to the supermarket to shop. When you walk through the shelves and put all kinds of goods in the shopping cart, you are actually paying for your life consumption**. Together, these make up your personal consumption index. If the consumption of all people in the country is taken into account, then the Household Consumption Index (CPI) is formed. Therefore, CPI is like the sum of the goods in our shopping cart, which reflects the level of goods and services we buy.
And when we walk out of the supermarket and into the factory area, we will see a different picture. There, workers are busy producing a variety of products, from raw materials to finished products, every step of the way comes at a cost. These costs include raw materials, energy, labor, and other expenses. Together, these costs make up the Industrial Producers** Index (PPI).
Okay, now that we understand these two terms, let's take a look at the latest data. In November this year, the CPI declined due to factors such as the downward fluctuation of food and energy. It's like you find in the supermarket that you usually need to spend 10 yuan to buy all the ingredients for a week, but now you may only need 9 yuan5. Although such a change may seem small, it can also reduce some pressure on our wallets over time.
However, it's worth noting that this doesn't mean that the ** for all goods is declining. The core CPI, that is, the CPI after deducting food and energy, was 06%。It's like those non-essential items you see in the mall, such as mobile phones or designer bags, which haven't gone down because of the overall price drop. This is called "mildness".
Next, let's take a look at PPI. In November, the PPI turned from flat to declining month-on-month, and the year-on-year decline also expanded. It's like a baker who notices that the flour and yeast are decreasing, but the cost of making bread is not decreasing. Why is that?It turns out that in addition to the cost of raw materials, there are other production costs that are rising, such as labor costs, rent, etc. Therefore, even if the price of raw materials is reduced, the final price of the product will not necessarily be reduced.
So, what impact do these numbers have on us ordinary people?To put it simply, a decrease in the CPI may reduce our living expenses a little, while a change in the PPI may affect the production and investment decisions of companies. Businesses may adjust their products** or slow the pace of expansion due to higher production costs.
These economic indicators are like weather forecasts in our lives, they tell us future price trends and help us better plan our income and expenses. They are also an important basis for policy-making. So, as abstract as these numbers may seem, they are actually very close to our lives.
CPI and PPI data were released in November