Explanatory Notes on Main Statistical Indicators

Consumer Price Indices reflect the trend and degree of changes in prices of consumer goods and services purchased by urban and rural households during a given period. They are obtained by combining Consumer Price Indices of Urban Household and Consumer Price Indices of Rural Household. The Indices enable the observation and analysis of the degree of impact of the changes in the prices of retailed goods and services on the actual living expenses of urban and rural residents.

Consumer Price Indices of Urban Household reflect the trend and degree of changes in prices of consumer goods and services purchased by urban households during a given period. It can be used to observe and analyze the impact of price changes in consumer goods and services on urban household income and consumption expenditure.

Consumer Price Indices of Rural Household reflect the trend and degree of changes in prices of consumer goods and services purchased by rural households during a given period. It can be used to observe the impact of change in retail prices of consumer goods and service prices on rural household income and consumption expenditure on living.

Retail Price Indices reflect the trend and degree of change in retail prices of commodities during a given period. The change in retail prices of commodities is related to government revenue, the equilibrium of market supply and demand, and the ratio of consumption to accumulation. Therefore, the retail price indices are useful from an oblique perspective for observing and analyzing the changes of the above economic activities.

Price Indices for Means of Agricultural Production reflect the trend and degree of changes in the prices of the means of agricultural production during a given period. Compilation of these indices helps to understand the price changes of material input in agricultural production and facilitate the compilation of national accounts. Before 1994, price indices for means of agricultural production were a sub-category in the retail price indices for commodities, and it has been compiled separately since 1994.

Producer Prices Indices for Farm Products reflect the trend and degree of changes in producers’ prices received by farmers when they sell farm products during a given period. These indices depict the change in the level and structure of producer prices for farm products of the country and meet the needs of agricultural statistics and national accounts statistics. The producer price index for a given product is calculated as the geometrical mean of individual indices for all surveyed units which sell such product, and the indices for a product category is obtained as the weighted mean of price indices for all products in the category. Method for calculating accumulative quarterly indices is the same as for calculating the individual quarterly indices.

Producer Price Indices for Industrial Products reflect the trend and degree of changes in general ex-factory prices of all manufactured goods during a given period, including sales of manufactured goods by an industrial enterprise to all units outside the enterprise, as well as sales of consumer goods to residents. It can be used to analyze the impact of ex-factory prices on gross output value and value-added of the industrial sector.

Purchasing Price Indices for Industrial Producers  reflect changes in the level and degree of prices paid by industrial enterprises when they purchase production input such as raw materials, fuels and power from the market or from other energy or raw materials producing enterprises. These indices provide an important basis for measuring the material consumption of industrial enterprises after removing the influence of price changes.

At present, products in 9 categories, including fuels and power, ferrous metals, non-ferrous metals, chemicals, building materials, are covered in China for the survey to produce indices for purchasing’ prices for industrial producers.

Price Indices for Investment in Fixed Assets reflect the trend and degree of changes in prices of investment goods and projects in fixed assets during a given period. The investment in fixed assets consists of three components, namely the investment in construction and installation, the investment in purchases of equipment and instrument, and the investment in other items. Price indices for investment in fixed assets are calculated as the weighted arithmetic mean of the price indices for the three components of investment in fixed assets.

Removing the factor of price change in the aggregates of investment at current prices, this indicator shows the changes in the prices of commodities and fees involved in the investment of fixed assets, and can be used to observe the actual size, growth, structure, and efficiency of investment in fixed assets and provides reliable and scientific data for government planning, management, decision-making, and further improving the current national accounting system.