The Study On The Consumer Price Index Defects And The Establishment Method

The consumer price index is generally considered the most important indicatorsof inflation, China’s central bank timely pegged to the consumer price index’s changeto detect China’s economic trends. However, there are the problems such as the lackof representation of the specifications, the unreasonable weights, and standardproducts adjustment untimely in the preparation of the consumer price index;Theconsumer price index is difficult to accurately reflect the actual inflation situation inChina.According to the characteristics of the consumer price index data, this paper usesCointegration text and Granger causality test to analyze the root of the problems ofthe consumer price index. And then, this paper prepares the core inflation index,which is considered to be able to reflect the true indicator of the degree of pricechanges. At present, the developed countries or economies have been developed andlaunched the core rate of inflation. Learning from foreign experience and combiningwith China’s actual economic data characteristics, this paper respectively uses theexcluding method and the factor weighting method to prepare the core inflation index,Compare the effect of the core consumer price index which eliminate differentprojects, and the pros and cons of the excluding method and the factor weightingmethod, hoping to more accurately measure the actual inflation situation.By analyzing the calculation results, SVAR modeling calculation method’sprocess is complex and requires a higher quality of the data, which is unsuitable forthe calculation of the core rate of inflation; The statistics calculation methods andChina’s actual economic data fit better and can be widely used in the actual operation.In the calculation of core inflation index factor weights have more advantages. Wecan draw the conclusion that the core inflation’s rising does not have a rigid, but thedecline has a rigid, and that the next period of time there are inflationary pressures inChina by analyzing the core inflation measured by the factor weighting method.