The much-anticipated CPI is coming tonight, with prices as high as 50,000 and as low as 25,000. Everything is possible. Control your positions and pay attention to risks.
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What is cpi index? The cpi index has always been one of the important indicators for the country to judge economic development. Investors who don't care about these may not know much about the cpi index, but the cpi index can affect the stock market. I guess everyone is a little interested.
02
cpi, the Consumer Price Index (ConsumerPriceIndex), abbreviated as cpi in English, is a price change indicator that reflects the price of products and services related to residents' lives. It is usually used as an important indicator to observe the level of inflation.
Generally speaking, the level of CPI directly affects the introduction and intensity of the country's macroeconomic control measures, such as whether the central bank adjusts interest rates and whether to adjust the deposit reserve ratio, etc. At the same time, the level of CPI also indirectly affects changes in the capital market (such as the stock market).
What is cpi index? What does rising cpi mean?
Rising CPI manifests itself as rising consumer goods prices, inflation, and currency depreciation, which shrink people's income, reduce purchasing power, and reduce welfare levels.
For example, over the past year, the Consumer Price Index rose 2.3%, which means that the cost of living has increased by an average of 2.3% from a year ago. When the cost of living increases, the value of your money decreases. In other words, a 100 yuan note received a year ago can only buy 97.75 yuan worth of goods and services today.
Therefore, rising CPI means economic instability and turmoil in the market economy, which will cause changes in people's living standards. The cpi level should be kept within a certain range and should not rise or fall excessively.
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What is cpi index? What does falling cpi mean? The decline in CPI is reflected in the decline in consumer goods prices, the increase in people's purchasing power, and the improvement in welfare levels. However, on the contrary, excessive rise will have an adverse impact on producers, causing their profits to fall, dampening production enthusiasm, reducing supply, thus reducing the number of workers employed, and increasing unemployment.
In the short term, falling prices will be beneficial to consumers, but if it lasts for too long, it will cause a recession for companies and affect income growth. Ultimately, it is consumers who will be affected.
What is cpi index? For stocks, CPI index generally speaking, when prices rise, stock prices rise; when prices fall, stock prices also fall.
Theoretically speaking, there is no functional relationship between CPI and the rise and fall of the stock market, but it can indeed affect the stock market through the supply and demand relationship on the financial side.
The continued rise in cpi will trigger structural adjustments in the stock market. The continued rise in cpi also reminds stock market investors to be wary of asset price risks. Generally speaking, when CPI continues to rise, the investment direction will shift to high-return investment markets such as the stock market.