How is China's CPI affected by the coronavirus outbreak?
WHAT IS CPI?
Consumer price index is a measure that examines the weighted average of prices of a basket of consumer goods and services.
It is calculated by taking price changes for each time in the predetermined basket of goods and averaging them.
CPI =cost of market basket in given year÷cost of market basket in base year
{base year is determined by bureau of labor statistics.}
HOW THE CPI IS USED?
CPI is widely used as an economic indicator to measure inflation and, by proxy, of the effectiveness of the government economic policy. It gives the government an idea about price changes in the economy and can act as a guide in order to make informed decisions about the economy.
IMPACT OF CPI IN CHINA DUE TO CORONAVIRUS OUTBREAK
1. Global oil prices fell down which rose at the beginning of January 2020 due to the coronavirus outbreak.
2. China's cpi spiked 5.4 percent compared to the last year.
3. Food prices are soaring more than 20 percent in China compared to the last year--up more than 17 percent from December according to Xinhua.
4. Carrefour supermarket in shanghai was fined last week by city regulators for price gouging, after its lettuce surged to 8 times its regular prices.
Amidst all the economic and political losses caused by the Coronavirus, it is advised to take ample personal care and precautions to curb the pandemic. It is also requested to each and everyone to be vigilant enough and prevent spreading fake news and creating a panic situation among the common people.
WHAT IS CPI?
Consumer price index is a measure that examines the weighted average of prices of a basket of consumer goods and services.
It is calculated by taking price changes for each time in the predetermined basket of goods and averaging them.
CPI =cost of market basket in given year÷cost of market basket in base year
{base year is determined by bureau of labor statistics.}
HOW THE CPI IS USED?
CPI is widely used as an economic indicator to measure inflation and, by proxy, of the effectiveness of the government economic policy. It gives the government an idea about price changes in the economy and can act as a guide in order to make informed decisions about the economy.
1. Global oil prices fell down which rose at the beginning of January 2020 due to the coronavirus outbreak.
2. China's cpi spiked 5.4 percent compared to the last year.
3. Food prices are soaring more than 20 percent in China compared to the last year--up more than 17 percent from December according to Xinhua.
4. Carrefour supermarket in shanghai was fined last week by city regulators for price gouging, after its lettuce surged to 8 times its regular prices.
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