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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.

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11y ago
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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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Q: What is the mathematical formula for calculating price index?
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