Price index number types
Price index, measure of relative price changes, consisting of a series of numbers arranged so that a comparison between the values for any two periods or places will show the average change in prices between periods or the average difference in prices between places. A simple price index tracks the price of a single commodity The formal definition is: Simple aggregate index = ∑p ∑p n × 100 o Where Σpn = the sum of the prices in the current period Σpo = the sum of the prices in the base period 20-12