Master of Arts
Department or Program
AN ABSTRACT OF THE RESEARCH PAPER OF
Binbin Shen, for the Master of Arts degree in Economics, presented on October 24th, at Southern Illinois University Carbondale.
TITLE: THE RELATIONSHIP BETWEEN CONSUMER PRICE INDEX AND PRODUCER PRICE INDEX IN CHINA
MAJOR PROFESSOR: Dr. Scott Gilbert
The consumer price index (CPI) and the producer price index (PPI) are important indicators of price monitoring and analysis. The accurate relationship between PPI and CPI is essential for monitoring and managing inflation. In theory, consumer price index and the producer price index should exist in a sequence and conduction relationship. But the data shows that in the short term, PPI and CPI may not have the positive relationship. This paper will use the data of consumer price index and the producer price index between 2011 and 2017 in China. The result shows that there does not have any relationship between the growth rate of CPI and the growth rate of PPI.