Finance & Money · 通货膨胀（Inflation） · Updated 2026-10-25
What Is Inflation?
Definition
Inflation is measured by CPI, though personal felt inflation often deviates (housing is excluded from CPI; pork weighs heavily). Central banks target mild 2-3% — lower risks deflation, higher失控失控 spirals. Its core personal impact is purchasing-power erosion: at 3%, 100 units of buying power halve in 24 years (Rule of 72: 72÷3). Every financial decision should net out inflation: a 2% deposit against 3% inflation is −1% real — nominally earning, actually losing.
Formula
Real rate ≈ nominal rate − inflation; halving time ≈ 72 / inflation
Worked Example
The purchasing power of 10k yuan in 1990 equals roughly 80-100k by 2026 (compounded CPI); "keep 10k in the bank for 36 years" yields ~23k of principal plus interest — +130% nominally, heavily eroded in real terms.
Common Misconception
"Beating the deposit rate means I'm safe" — the benchmark is inflation, not the demand rate. And don't measure inflation by one item (pork, gold): housing, education and healthcare weigh far more in personal baskets than in CPI, so felt inflation typically runs 1-2 points above the official figure.
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