All three CPIs have the same trend throughout the years 1985 to 2007. There is
a gradual increase in CPI from 2002 to 2007. CPI in urban areas experienced a
growth of 5.5 percentage points, CPI in rural areas increased by 6.4 percentage
points while the overall CPI grew by 5.6 percentage points. An increasing CPI
would signify increasing inflation rates.
Below is the chart of China consumer price index and trends from year 1985 - 2011:
Consumer price index
(CPI) of China, Japan, USA, UK, Germany, France, Canada, India
Comparing between CPI of 12 countries, using year 2000 as the base year,
China’s CPI of 108.5 percentage points would be considered low relative to
the rest of the countries such as Philippines
( 137.9 percentage points),
India (131.9 percentage points) and Australia (120.2 percentage points).
This is a healthy signal as this will maintain its exports competitiveness
in the international trade.
Below is the chart of consumer price index (CPI) among China, Japan, USA,
UK, Germany, France, Canada and India for the year 2011: