Author(s)

Jiangnan Qin, Xinyu Lu, HaoRan Luo

Corresponding Author

Jiangnan Qin

ABSTRACT

CPI and pork price have a very important impact on people's daily lives and macroeconomics. This paper selects the monthly data of China's pork price and CPI from January 2010 to February 2020 and further explores the dynamic relationship between China's pork price and CPI by using the VAR model, impulse response function and variance decomposition method. The results of the study show that pork price and CPI are Granger causality. China's pork price fluctuations are mainly affected by its own factors and its contribution rate shows a downward trend. The fluctuation of China's CPI is mainly affected by its own factors, but the influence of its own factors on CPI gradually weakens. Based on the above conclusions, the author puts forward corresponding policy suggestions.

KEYWORDS

VAR model, Pork price, CPI