Research On Improvement Of Current Establishment Method Of The Consumer Price Index In China

In recent years, the price rising makes the ordinarily resident feel that life is heavier than before. But the data of Consumer Price Index, which is announced by the National Bureau of Statistics of China, shows that its increase scope is very different with the resident's feeling. This makes people question whether the establishment of CPI is scientific and efficient or not. According to statistical data, CPI is out of step with the resident income and the expense rate day by day for these years. The increase scope of CPI is far lower than that of the per capita disposable income and the expense.The primary reason that causes this phenomenon is that there are many abuses about the current establishment of CPI. As a result of covering scope's limitation and statistical weight's deviation and so on, the current CPI exist distorted phenomenon. It cannot reflect the public purchasing power's changing actually, and it also cannot weigh our country overall economy condition accurately. But inaccurate CPI data can not only harms the mutual trust between the public and government, and it also goes against the monitoring and warning that our country has placed on the inflation. Most of all it is not favor for the government to make a scientific decision. Therefore, we should have a deep studying on current establishment method of CPI in China and make an improvement on it.Firstly this article introduces the related knowledge of the CPI systematically. Then, bases on the contrastive analysis of Chinese and foreign CPI, it points out the insufficiency that exists in the current establishment and application of CPI in China. In the light of these insufficiencies, we give some improvement actions according to our country's practical situation. And we will use the data that issued by the National Bureau of Statistics of China, have empirical analysis on establishing the Core Consumer Price Index and Different Level Consumer Price Index. Thereby, we propose to establish a new CPI statistics system which regarding the improved CPI as main and the Core Consumer Price Index and Different Level Consumer Price Index as secondary.