The Regional Strategy Of CGPI Accuracy Improvement

The people's bank of China be the central bank of the People's Republic of China, it's function has been defined clearly in the Law of the People's Republic of China on the People's Bank of China in 1995.Summarized, it's core function is to formulate and implement monetary policy in accordance with law. The formulation and adjustment of monetary policy relate to economy and society, and synthesis price index which is the basis and measure standard of monetary policy is the key for the target of monetary policy. The objective of the monetary policy is to maintain the stability of the value of the currency and thereby promote economic growth. In recent years, the people's bank of China aims to stabilize the value of the currency while adjusting the monetary policy after increasing the reliance on indirect policy instruments.The theory and practice has proved that only comprehensive price index can measure currency value fluctuation and the situation of inflation. Therefore , The people's bank of China begins to release the Wholesale Price Index (WPI) which concluding all society goods from 1994 and based which formulating and adjusting monetary policy. In 2001, with the WPI had been released for more than seven years, the market economy of our country is increasingly improving, the economic structure, formation characteristics of goods price, and market logistics have changed dramatically. WPI was changed to Corporate Goods Price Index (CGPI) to reflect the changes and embody the spirit of price index.Today, twelve years later, this paper is focus on analysis the reason of low accuracy of CGPI and make a regional discuss to improving the accuracy from the point of the people's bank of China Weifang branch. Through the analysis of CGPI and macroeconomic trends which includes M₁ and social expectancy relevance and regression analysis, some conclusion has been drew of low CGPI accuracy. This paper also make a detailed investigation on the reason of low accuracy from two aspects, system designing and regional survey, and in the end eight strategy is put forward to improve the accuracy of CGPI. The regional strategy of CGPI accuracy improvement, will be able to make CGPI play a better role and contribute to maintain the validity and efficiency of monetary policy, promote a benign and orderly operation for society economic.