A Research about CPI Fluctuations Effects on Sichuan Vegetable Industry

Abstract

Sichuan is a major agricultural province in southwest China. Vegetable industry is a new growth point of Sichuan agricultural economy and farmers' income. But in recent years, due to various reasons, Sichuan vegetable industry faces many difficulties. In this paper, fluctuations in the CPI as the starting point, on the basis of the HP filter, using regression analysis and impulse response method to analyze the trend component and fluctuation component separately and get CPI fluctuations on Sichuan vegetable industry long and short term effects. The results show that: in long-term CPI continued to decline slowly can help farmers’ income growth and in short-term CPI excessive volatility led to vegetable price, farmers’ income, expenditure fluctuate drastic and had a direct impact on the healthy development of Sichuan vegetable industry.