Price Index

Definition: A price index is a single number summarizing price levels.

A larger number conventionally represents higher prices. A variety of algorithms are possible and a precise specification (which is rare) requires both an algorithm (an example of which is a Laspeyres index) and a set of goods, fixed known quantities of each (the basket)

Terms related to Price Index:

• Laspeyres Index
• Paasche Index
• The Fisher Index

About.Com Resources on Price Index:

• What Is Inflation?
• Should We Adjust Prices For Inflation?
• Cost-Push Inflation vs. Demand-Pull Inflation

Writing a Term Paper? Here are a few starting points for research on Price Index:

Journal Articles on Price Index:

• A Regression Method for Real Estate Price Index Construction
• Consumer Prices, the Consumer Price Index
• On Choosing Among House Price Index Methodologies