The Impact Of Housing Price On Consumer Price

The reform of real estate in the 1990s promoted the development of real estate,and the development of real estate has further effect on the development of macro economy.Furthermore,the price of real estate will affect the stabilization of price which is one goal of macro economic development.The coexistence of high housing price and high consumer price prompts us to think about the relationship between housing price and consumer price.This article mainly explores the specific relationship between real estate price and consumer price,that is,whether the rise in real estate prices will promote the rise in consumer price.This article analyzes the mechanism from real estate prices to the consumer price from the theoretical aspect,people meet the living needs through the purchase or rental,from the direct conduction mode,the building renovation costs and rent is part of the cost of living which will affect the changes in consumer price.In terms of indirect conduction,real estate prices affect real estate demand through collateral effect,wealth effect and Tobin Q effect,thus affecting consumer prices.In addition to real estate prices,the level of economic development and investment in fixed assets will also affect the level of consumer prices to a certain extent.In terms of domestic experience,this paper explores the impact of real estate price on consumer price based on the relevant panel data of 31 provinces,municipalities and autonomous regions in China,.In this paper,we use the data of 31 regions like Beijing,Zhejiang and Fujian to carry out the fixed effect,the random effect and the hausman test.The relevant model test shows that the domestic price will have a significant positive effect on the price of the consumer goods.In terms of foreign experience,this paper selected 54 foreign countries and regions from 2011 to 2015 to study the specific impact of housing price on consumer price.This paper chooses 54 countries and regions such as Australia,Brazil,Canada and France to make empirical research,and draws a similar conclusion with the domestic,that is,the improvement of housing price will promote the consumer price,and the impact of house price on consumer price is greater than that of domestic.The conclusion of this paper is that,the changes in real estate price at home and abroad will have a significant positive effect on consumer price,and the impact of foreign housing price on consumer price is more obvious.Domestic economic development and fixed investment will also have a significant positive effect on consumer price.The above empirical results provide some basis for government departments to formulate relevant policies.To begin with,the consumer price measurement system should be perfected to accurately reflect the price level by establishing new inflation indicators that cover real estate price;Then,the government departments should adjust the real estate market supply demand situation,so that housing price can fluctuate in a reasonable range;Finally,the relevant departments should ensure that the implementation of real estate policy and strengthen the real estate market regulation to achieve economic stability and sustainability development of economy.