Understanding China's mysterious CPI basket

What's in the CPI basket and what makes the price change so volatile?

Fast food, Asian style

China’s policymakers routinely use the consumer price index CPI as an important reference for deciding the country’s monetary policy, but how the index actually works is not readily transparent as the calculation behind the index has never been made public.

Given food’s heavy weighting in household expenditure and in particular the high per capita meat consumption in China, the nation’s CPI...

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