What is the basic meaning and function of consumer price index? What kinds of consumer goods does the consumer price index of China include?

Consumer price index is a relative number that comprehensively reflects the average price changes of various consumer goods (including goods and services) purchased by residents in a certain period. The index aims to analyze the basic trend of consumer goods market price and its influence on residents' consumption expenditure, and can also be used to observe and analyze inflation or deflation, so as to determine or adjust the government's fiscal policy and the central bank's monetary policy, adjust monetary wages to get the actual wage level, and so on.

China's consumer price index includes eight categories: food, tobacco, alcohol and supplies, clothing, household equipment and supplies and maintenance services, medical care and personal supplies, transportation and communication, entertainment, education, cultural supplies and services, and housing. Each category can be divided into several middle or small categories as appropriate, up to 262 basic categories.