How to learn ipc easily?

We are going to see in detail everything we need to know about the CPI to consolidate our knowledge of this interesting subject that concerns us all.

Remember to invest so that you don't have to worry about the inflation. Even if it is a deposit, there are index funds.

The Consumer Price Index is one of the main economic indicators that we should all know and it is essential for our day to day lives. The evolution of the price of goods and services in our economy is shown in the CPI.

The National Institute of Statistics in Spain is in charge of updating information on the CPI. The first price indices in Spain were calculated in 1936 and served as the basis for the first Cost of Living Index System.

The system has undergone many changes. The base 2001 and the base 2017: are noteworthy.

Among the main novelties of the CPI base 2001, its publication in 12 groups stood out, motivated by the adaptation to the COICOP (Classification of Individual Consumption according to purpose), as well as the updating of the weightings of these 12 groups based on the information provided the Continuous Survey of Family Budgets.

The current base entered into force in January of 2017: The new European consumer classification called ECOICOP, which implies a greater breakdown of information, is one of the characteristics of this new database.

The indicator of inflation in a country is the increase in theCPI. We explain it to you in this video.

You can fully understand what inflation is if you need it.

Every month the INE updates the data. The final data between the 10th and 15th of the corresponding month is known as advanced data and is published at the end of the previous month. The advance and final data are the same.

The data is published on the INE website every month. You can see the variations in the last year in this table.

INE

We continue! We are going to see what types of IPC exist.

It is used in the European Union to compare the price index of the different members, for example, the price index of Spain with that of the other euro zone economies. The basket of products is used in all countries.

The one that does not take into account the price of energy products or unprocessed food products is referred to as the one that does not take into account the underlying inflation. A more stable view of the evolution of prices in a country can be obtained with the underlyingCPI.

The INE is in charge of calculating the inflation rate.

A basket of goods and services changes over time to do this. Is that an example? A few years ago, items such as online video and music services were included. The recordable DVD and the camcorder were eliminated.

In order to carry out this basket, the INE contacts establishments in the country's 177 municipalities.

Sales and settlements are not taken into account in order for the basket to be as realistic and representative as possible.

It is made up of 479 articles divided into 12 groups with different weights, which are important to the market.

INE

The formula to calculate the inflation rate is defined as follows.

New prices x old quantities x 100.

The INE website has a calculator that will be as accurate as possible.

Have you heard that the cost of living is measured? That's a very good definition.

If the price goes up or down, this index does not collect the prices of a product or a service, but rather their variations over time.

If the inflation rate goes up 2%, we will have to pay 2% more for our shopping basket, which will be the same as in the previous month or period.

If the basic shopping basket goes up at a different rate than our income, we won't be able to buy the same thing. The State and some private companies raise the salaries of their employees based on the Consumer Price Index of the previous year, so that they don't lose purchasing power.

But, what can you do to stop the rise in the CPI? You will have to plan the management of your savings in the long term so that you don't lose money over time.

Even though your investment products give you profitability, if it is below the inflation rate, you will be losing money. You have to make sure that the Effective Annual Rate is higher than the expected annual inflation rate.

Do you not know where to start investing your savings? Finect puts you in contact with 3 financial advisors who will help you make your money profitable in the most appropriate way for you.

The National Institute of Statistics in Spain is in charge of preparing or calculating the CPI. The INE collects data and publishes it on a monthly basis.

It is said that there is inflation if prices go upwards.

Inflation will always be referenced within the framework of a certain period, since with lower inflation prices continue to rise but at a slower rate than in the past. It is said that there is deflation if prices decline.

What does the CPI tell us?

At a statistical level, theCPI is used.

The cost of living and inflation are important to know. Families will have to spend 2% more than in the previous period to purchase these products if theCPI rises 2% from one period to another. If the cost of living does not go up and our salaries do not go up in line, our purchasing power will be insignificant.

What are the goods and services included in the calculation?

The products are in the shopping basket.

Taking into account only the most common goods and those related to the family economy, the CPI considers only the most common products and services. These are large groups.

The purchase costs of housing are not taken into account when calculating the consumer price index.

The INE has different weights for each group, which means that not all the groups have the same weight when defining the CPI.

The importance of certain items in family spending is the reason for the weighting. The INE data shows that the different groups have different weights for the year in question.

The interpretation of these data is as follows: an average family spends more on food and non-alcoholic beverages; transportation; housing or hotels, cafes and restaurants that, for example, in alcoholic beverages and tobacco; medicine; communications; teaching or household This is reflected in the different weightings given to the different groups of products, which is reflected in the CPI and, therefore, in inflation.