An index number measures relative changes in price, quantity, or other variables over time or between locations. It expresses these changes as percentages. There are several types of index numbers including price, quantity, and value indexes. Index numbers can be constructed using simple aggregate, simple average of price relatives, or weighted methods. Weighted indexes assign weights to items based on quantities in the base or current period. Common weighted indexes include Laspeyres, Paasche, Fisher ideal, and chain indexes. Index numbers are used to track inflation or deflation, reveal economic trends, and help formulate government policies.