14 通货膨胀-讲义.pdf

Inflation Inflation and Its Measurement Definition • Inflation: A state of persistent rise in prices – Not all prices must be rising during a period of inflation –some prices may even be falling; but the general trend must be upward – A process of rising prices, not a state of high prices – The Core Inflation Rate is the inflation rate for all products and services other than food and energy. 3 Definition (contd) • Nominal value – Price expressed in today’s yuans • Real value – Value expressed in purchasing power, adjusted for inflation 4 Measuring the Rate of Inflation • Real-world price indexes – Consumer Price Index (CPI) A statistical measure of a weighted average of prices of a specified set of goods and services purchased by consumers – Producer Price Index (PPI) – GDP deflator 5 How the CPI Is Calculated 1. Fix the “basket.” Surveys consumers to determine what’s in the typical consumer’s “shopping basket.” 2. Find the prices. Collects data on the prices of all the goods in the basket. 3. Compute the basket’s cost. 6 How the CPI Is Calculated 4. Choose a base year and compute the index. CPI = 100 x cost of basket in current year cost of basket in base year 5. Compute the inflation rate. The percentage change in the CPI from the preceding period. Inflation = CPI this year – CPI last year x 100% rate CPI last year