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Price went up or Down ?

~CPI~

Reading

10 min​

What you can see from this Article

About

CPI

What can be read

from the CPI trend

CPI type

and role

Difference between

GDP and CPI

 

 

 

- prologue - About CPI

 

 

The situation “paying money” is quite limited.

 

 

When buying things

Haircuts, taxis and other services

Energy such as water bill and electricity bill

Or if you live in an apartment you will pay the rent.

 

The price is predetermined for everything we pay for life.

 

 

Formally called

"Consumer Price Index"

 

 

The thing which summarized the change transition of the price in the index every month is called consumer price index,

 

commonly called "CPI".

 

In this article, I briefly summarized what CPI is,

 

what can be read from CPI,

 

Consumer Price Index (CPI).

 

 

 

CPI has

so many subjects

 

Demand always changes.

 

Only the types of products we can sell and buy will affect CPI fluctuations.

 

Therefore, there is a price index for each item in addition to the index that indicates the overall price.

↓ You can check the subject with a click

arrow&v

 

As an example in food industry products

 

Rice

Bread

Udon

flour

 

You can also check the price index for each item.

 

 

What is in high demand now?

 

What is the low supply now?

 

 

It can also be useful for business.

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What is the important

CPI for investors ?

 

When a securities company announces to a trader,

 

the indicator is not announced in a detailed course.

CPI (Overall)

CPI (except perishables)

CPI (excluding fresh food and energy)

 

In many cases, these are announced as the above three economic indicators.

 

 

 

 Prices depend on the season

 

Perishables and energy tend to have large fluctuations in index values depending on the season.

 

Therefore, it will be announced as a separate indicator from the general.

 

CPI (except perishables)

 

CPI (excluding fresh food and energy)

 

These indicators, called core indicators,

 

are not particularly affected by the season,

 

 

and they are particularly focused on whether inflation or deflation is to be measured, as their fluctuations are universal.

 

 

An indicator similar to CPI

 

 

There are also economic indicators that measure economic growth rates,

 

such as GDP, as economic indicators that measure price trends.

 

 

For GDP, this article is helpful

[ See the country's economic growth ]

 

 

The differences between GDP and CPI are briefly described at the end of this CPI article.

 

 

 

Summary

 

The price of goods will be most important for consumers to shop.

 

 

Products with high demand can also be sold at a higher price than the appropriate price.

 

 

This economic indicator can be used better by business operators who do business than consumers.

 

 

CPI explores consumer trends and facilitates business.

You can see it as such a material.

 

 

- epilogue -

What is the difference between

GDP and CPI?

 

Simply put

① The value seen from the producer point of view is GDP

② The value seen from the consumer point of view is CPI

The above explanation is not strictly correct,

 

but at first I think that this degree of recognition may be acceptable.

 

Both GDP and CPI are common when investigating supply and demand.

 

However, GDP and CPI have different roles.

 

 

If GDP measures the economic growth rate from the balance between supply and demand,

 

it can be said that CPI measures the balance between supply and demand for each item from prices.

 

①GDP

Supply and demand balance

Measuring supply and demand balance from price and quantity of product

Readable value

Can measure

product added value

②ICP

Supply and demand balance

Measuring supply and demand balance from price trends

Readable value

Can measure

the value of goods for sale

 

This may be felt the same way.

GDP is ① the value of stage produced

CPI is ② the value when consumers buy products

Finally, let's look at an example.

- Example -

The value of wine

 

 

Generally, high-quality wines with strong Tannins require long-term ripening.

 

 

① Production stage wine

 

The value of the wine just produced relates to GDP.

And when the value of the wine is the highest over the years.

② When the year has passed and it is in the hands of consumer

The price sold to the consumer relates to the CPI.

 

 

In this way, the numbers to be focused on change from stage to stage.

 

Corporate Goods Price Index

 

 

When wines are imported and exported by business transactions

 

③ The Corporate Goods Price Index (CGPI) is relevant.

 

 

I would like to summarize that story on another occasion.

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【References】

Bank of Japan-Price related statistics

J.P Ministry of Internal Affairs and Communications Statistics Bureau-Consumer Price Index

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