How is the price index calculated?

Price index is a relative number used to reflect the degree of change in the total level of prices of all goods sold (or purchased) in the reporting period compared with the level in the base period. It is usually expressed as a percentage and is a type of economic index.

Price index according to its different scope, divided into a single commodity price index (or individual price index), commodity price index (or price index) and total price index. An index that reflects the degree of change in the average price level of a commodity is called an individual commodity price index; an index that reflects the degree of change in the total price level of a particular category or all commodities is called a price class index or a total price index. Price indexes are divided into chain price indexes (based on the previous period), year-on-year chain price indexes (based on the same period of the previous year) and regular price indexes (based on a fixed period) according to the different base periods they use. At present, the price indexes compiled by the national statistical department are: consumer price index, retail price index of commodities, agricultural and sideline products purchase price index, etc.?

Retail commodity price index is a kind of economic index reflecting the trend of urban and rural commodity retail price changes. Adjustments and changes in retail commodity prices have a direct impact on the living expenses of urban and rural residents and the state's financial revenue, affecting the purchasing power of residents and the balance of supply and demand in the market, and affecting the ratio of consumption to accumulation. Therefore, the calculation of the retail commodity price index can observe and analyze the above economic activities from one side.?

The consumer price index is a relative number reflecting the trend and degree of change in the prices of consumer goods and services purchased by urban and rural residents during a certain period of time. It is calculated by combining the Consumer Price Index for Urban Residents and the Consumer Price Index for Farmers. Using the consumer price index, you can observe and analyze the retail price of consumer goods and service price changes on the urban and rural residents of the actual cost of living expenditure.