At present, there are eight basic categories in the official CPI of China, although the living expenses category includes expenditure on owner-occupied housing, this expenditure is replaced by the virtual rent which is calculated by per unit area of mining areas and towns individual housing construction cost. However, there is quite a number of housing in China is calculated based on the completed-housing costs of real-estate development enterprise. Therefore, the housing consumption of official announces cannot truly reflect the real situation of people's life, causing bias in CPI.
By using the methodology of Wang’s research, the China’s CPI between January of 2001 and April 2009 is re-estimated in this thesis. There are four parts in this thesis. The first part mainly introduces the subject background. The second part discusses the current treatment of housing service and drawbacks in compiling China’ CPI and so on. The third part re-estimate China’s CPI and analyzes the influence of housing service to China’s CPI. The fourth part gives some suggestions about improving China’s CPI system.
