In a market economy, the rate of change of the consumer price index (CPI), the CPI-based rate of inflation, indicates the magnitude of inflationary pressure in the consumption goods market. The author examines the sources of biases in China's official CPIs in order to determine whether the...

The rate of inflation in China has behaved cyclically, and two inflationary spells have appeared in the past decade. The author examines the short-run inflation dynamics during the reform period to derive numerically the output-inflation tradeoff. According to him, the high growth and wide...