an index that traces the relative changes in the price of an individual good (or a market basket of goods) over time

a device for measuring price level changes by tracking the price of a designated bundle of goods through time with respect to a base year

a series of numbers, one for each period, representing an average price of a group of goods and services, relative to the average price of the same group of goods and services at a base period

a statistical tool used to measure price changes over time

a tool that simplifies the measurement of movements in a numerical series

a weighted aggregate measure of constant quantities of goods and services selected for the package

a yardstick for measuring changes in general price levels

Expresses the unit price in each period as a percentage of the unit price in a base period. This facilitates comparisons with other years and enables the price change in any period to be calculated. (Also known as Price Relative Index).

a measure of the level of prices found by comparing the cost of a certain basket of goods in one year with that cost in a base year

A measure of the weighted-average of the price for a "market basket" of goods calculated as a ratio to market basket price in a given time period (the base year). Mathematically, [(price in a given year) divided by (price in base year)]. A price index is primarily used to compare relative prices, or changes in the group prices over time. Such an index is a handy indicator of overall price trends. Two common price indexes that surface in the study of macroeconomics are the Consumer Price Index (CPI) and the GDP price deflator, both used to indicate the macroeconomy's average price level and the inflation rate.

a formula showing how average prices have changed over a stated period

An indicator of average price change for a group of commodities that compares prices for those same commodities in some other period, commonly called the base period.

A numerical measurement to show variations in price or prices over time or space. Many different formulae have been suggested as the basis of measurement.

A price index is any single number calculated from an array of prices and quantities over a period. Since not all prices and quantities of purchases can be recorded, a representative sample is used instead. Inflation and cost indices are calculated as price indices.