Inflation Measurement in China under the Coronavirus Pandemic

Abstract

The consumer price index (CPI) and core consumer price index (core-CPI) are the main indicators reflecting the price level and inflation of a country or region. The two indicators and their transmission relationship are also widely concerned by the economic community. Theoretically, these two indexes will not fluctuate suddenly. However, in recent years, due to the uncertainty of the Corona Virus Disease 2019, the trends of both indicators have declined to vary degrees. This paper will start with the CPI, CORE-CPI, and inflation rate from 2017 to the present, and analyze the reasons behind their abnormal phenomenon. The results showed that the pork sales volume was the main reason for causing the fluctuations. Understanding the reasons for the decline will help China quickly formulate the most effective plan and help the inflation index to return to the right track. At the same time, it timely leads the country out of difficulties.