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What is the mathematical formula for calculating price index?

Updated: 10/24/2023

Wiki User

11y ago

The price index is a simple sum - the sum of the prices for a list of articles and services considered to be "typically" used by a family. The real trick consists in (a) defining what products and services (and in what quantities) are "typical", and (b) finding out the actual prices.

Wiki User

11y ago

7mo ago

The formula for calculating a price index is (Current Year Cost / Base Year Cost) x 100. The result gives you the price index value, representing the percentage change in price between the current year and the base year.

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