Dissertation > Economic > Trade and Economic > China's domestic trade and economic > Price

Compilation and Application of China’s Different Economic Regional CPI

Author WangBin
Tutor YangCan
School Xiamen University
Course Statistics
Keywords Consumer Price Index regional CPI Harmonized Index ofConsumer price
CLC F726
Type Master's thesis
Year 2014
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With the rapid development of Chinese economy, the imbalance between regions revealed. Different areas have significant differences in the level of economic development, income levels, spending habits, etc., and these factors affect the market price changes, then impact the change in the CPI. Simply using a unified national CPI index has been unable to meet the needs of market development, the preparation of different economic regions CPI has become imperative. It should be noted that, due to the difficulty to obtain regional data, in order to facilitate the analysis, this paper will focus on the study of theoretical methods for the preparation of the regional CPI.Firstly, the paper describes the theory and methods of the Chinese CPI, points out some issues of China’s CPI, such as the choice of Representative specification, weight adjustment frequency and index unity, etc., and analyzes the necessity of preparing regional CPI.Secondly, the paper describes a procedure for estimating the regional CPI published by ILO, the methodology of regional US CPI and UK CPI(HICP). And then estimates China’s regional CPI, which is based on economic regions (Northeast, north coast, east coast, southern coastal, middle Yellow River, the middle reaches of the Yangtze River, southwest River northwest region). The conclusion is that Southwest and Northwest derived the highest price volatility, followed by Northeast, Southern coastal and Middle reaches of the Yellow River, the lowest is North coastal areas, Eastern coastal areas, Middle reaches of the Yangtze River, and China’s CPI is reasonable.Finally, in order to solve the problem about comparability of the regional CPI, the paper introduces Harmonized Index of Consumer Prices published by Eurostat, describes the basic theory and method of preparing HICP. And then analyzes the possibility of preparing China’s HICP and China’s regional HICP in the future.

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