Consumer price development in China – additional information
The Consumer Price Index measures the average changes over time in the price level of a market basket of consumer goods and services purchased by consumers. It is closely related to the inflation rate. The consumer inflation rate is derived from the annual percentage increase of the CPI.
Since 2011, China has seen a slight decrease in domestic inflation. By the end of 2014, the annual inflation rate had ranged at around two percent. It is expected that prices for non-food commodities, such as clothing, will continue to drop. However, household income inequality may contribute to lower consumption rates and higher savings, despite the continuous expansion of production globally.
In recent years, China had been one of the fastest growing markets for vanity goods and services. In 2014, the country had consumed almost 670 metric tons of gold dedicated for use in jewelry. Mainland China is considered one of the largest luxury goods consumers in the world with many purchases being made outside of the country by Chinese tourists. In 2012, Chinese consumers had spent about 22 percent of their expenditures on cosmetics and perfumes overseas.
The CPI of clothing in China ranged among the highest reaching 103 points, whereas their transportation and communication’s CPIwas one of the lowest at 98.5 points as of the same period (252086). The CPI within the country varies slightly in rural and urban areas. The CPI in China has risen from much lower levels experienced in the mid 1990s. In comparison, the CPI among urban consumers in the United States had reached 236.74 points in 2014.