From the chinese press
China Daily | Updated: 2011-02-25 07:55
The poor need separate CPI
The consumer price index (CPI) for low-income people should be calculated separately, because even a slight price rise can wreak havoc in their lives, says an article in Youth Times. Excerpts:
The impact of price rise on high- and low-income groups is different because their consumption level and pattern differ greatly. The main cause of the high inflation today is rise in prices of food, which accounts for the largest part of poor people's consumption. Since CPI influences people of different income levels differently, it cannot reflect the real predicament of the poor.
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