The price index averages prices for goods and services in a specific area over time, encompassing various indices like the consumer price index (CPI), wholesale price index, import-export price index, and GDP deflator. The CPI measures inflation by comparing the price of a basket of goods, while the wholesale price index reflects price movements in goods and services. The GDP deflator, another inflation measure, is calculated by dividing nominal GDP by real GDP and multiplying by 100.

1. PRICE INDEX

2. Price Index
• It is the average of prices for a given goods
and services in a given area or region during a
given period of time.
• It includes computation of following indices
Consumer Price Index
Wholesale Price Index
Import-Export Price Index
GDP Deflator

3. Price Index
• CPI – Consumer
price index
compares the price
of a basket of goods
over a period of
time. It is generally
accepted as a
measure of
inflation.

4. Price Index
• Wholesale Price Index- It measures the
movement of prices for a given set of goods and
services basket.
• It is also used to measure inflation over a period
of time in primary and secondary market.

5. Price Index
GDP Deflator – it is calculated by dividing the
Nominal GDP by Real GDP, multiplied by 100.
It is again a measure of inflation.

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