What factors affect the CPI increase in China?

There are many reasons for the price increase. In terms of the total amount, the liquidity pressure is relatively large. The broad money exceeds 40 trillion yuan, and the abundant money supply is one of the factors affecting the rise of the overall price level.

Structurally speaking, the inducement that affects this round of CPI increase is the rise of pork price in the middle of the year. The increase in meat price is due to the low meat price in 2006, which led to the decline in the number of live pigs. In addition, the effect of blue ear disease in pigs has caused the price to rise. All these have caused the price of meat to rise, which has led to the rise of the whole CPI.

The impact of rising international commodity prices on the import of China market is also the reason, first of all, the rise in oil prices. The price of oil rose from about $25 a barrel in 2003 to a peak of more than $65,438,000 a barrel in 2007. China imports a lot of oil, which will push up domestic oil prices and domestic prices. Second, the price of edible vegetable oil has risen. In 2007, the international market price almost doubled, and the domestic price increase was lower than the world increase. The prices of oil and edible vegetable oil are both rigid products, so they are also very important structural factors to promote the rise of CPI. Generally speaking, this round of inflation has a worldwide trend.

This round of price increase has both gross and structural reasons; There are both domestic factors and international factors and influences; There are demand-driven factors, cost-driven factors, market expectations, wealth effects and so on. These are the results of comprehensive influence. Therefore, to control the price increase, we need to take various measures, and it takes a process for these measures to be effective. Accurately speaking, the CPI we calculate does not directly include the sales price of commercial housing, but includes the living price. House prices include building and decoration materials, including rent, including public houses and private houses, and other expenses, including self-owned houses, changes in housing loan interest rates, property management fees, maintenance fees, etc. These are actually closely related to housing prices.

Why not directly include the house price in CPI? First of all, in international statistics, everyone pays attention to comparability. The CPI of each country does not directly include the house price, but indirectly, such as loan interest rate, building materials, house rent and so on. All of them are like this, so in order to be comparable, countries must be unified. Second, buying a house is an investment behavior, and only the daily consumption every year constitutes consumption, because the house is durable, and it will take at least 50 years.