First, CPI
CPI (Consumer Price Index) refers to the changing trend and degree of the price level of goods and services consumed by residents in a certain period.
CPI is a macroeconomic indicator that reflects the changes in the price level of consumer goods and services generally purchased by households. It is a relative number that measures the price level of a representative group of consumer goods and services in a certain period of time. Used to reflect the changes in the price level of consumer goods and services purchased by households, it is the coefficient of variation of retail prices of goods and services within one month.
Consumer price statistics survey the final price of social products and services, which is closely related to people's lives and occupies an important position in the whole national economic price system. It is an important indicator of economic analysis and decision-making, monitoring and regulation of the overall price level and national economic accounting. Its change rate reflects the degree of inflation or deflation to some extent. Generally speaking, inflation is considered to occur when prices rise in an all-round way, in contrast to changes, and it continues.
Second, PPI
Producer price index (PPI) is an index to measure the trend and degree of ex-factory price changes of industrial enterprises, an important economic indicator to reflect the price changes in the production field in a certain period, and an important basis for formulating relevant economic policies and national economic accounting. The producer price index is different from CPI, and its main purpose is to measure the total cost of a basket of goods and services purchased by enterprises. Because enterprises will eventually transfer their expenses to consumers in the form of higher consumer prices, it is generally believed that the change of producer price index is useful to predict the change of consumer price index.