China’s Consumer Price Index (CPI) An Empirical Analysis Of The Influencing Factors

Consumer price index is a major statistical indicator, reflecting the macroeconomic situation in a country or region is response of the residents of the pointer on the goods and services that the consumer price changes. It can reflect changes in the cost of living in different periods, but also reflects the degree of anti inflation. This indicator affect government funds, finance, prices, wages, social security and other policies, will have a direct impact on the standard of living of the residents. In order to better study of China’s economic development of China’s consumer price index changes, multifactors comprehensive analysis.The use of China’s consumer price index data of 1990-2014, the first of China’s household consumption volatility trend analysis, we can see that China’s consumer price index increased year by year. Secondly based on the impact of China’s consumer price index, single factor regression model of GDP, fiscal balance, money supply, capital formation and the final consumption were analyzed. Based on the analysis of single factor, can be seen in various factors of China’s consumer price index of the degree of influence. According to the comprehensive analysis of the consumer price index in China the influence factors. China’s consumer price index and fiscal balances, money supply and capital formation there is a linear relationship significant. Using different methods to analyze the index can more truly reflect actual impact. Then using principal component analysis to A comprehensive analysis of the influence factors of China’s consumer price index, to find out the impact of China’s consumer price index fluctuations in the inherent law, including capital formation factors. At last, the paper combined with the actual situation in our country are proposed to stabilize the opinions and suggestions of China’s consumer price index.