The Influence of Inflation on the Consumption of Chinese Residents

Abstract

China's inflation rate fluctuation is higher than that of developed countries in the same period, while the world has achieved remarkable economic development. With the economic growth and the increase of income, the problem of income inequality in China has become increasingly prominent. The polarization between rich and poor will affect social stability and become a huge resistance to building a well-off society in an all-round way. Exploring the relationship between inflation and income inequality, and proposing targeted measures to reduce the income gap, is of great practical significance for China to deepen reform and enhance people's sense of happiness and gain. China's economy has also been affected by imported inflation in the context of the global epidemic. This paper will analyze the basic theory of inflation and related effects, and focus on its impact on China's macroeconomic consequences. This paper uses the swot analysis method to analyze the current inflation test in China from the negative and positive effects, threats and opportunities, and interpret the relevant policies of China at the current stage and make a reasonable forecast of the future inflation trend.