Price Index

A normalized average of prices for a given type of product or service in a given sector, during a given interval of time.

Deeper Insights

Price Index is a statistic designed to help to compare how these prices differ between time periods or geographical locations. Two well known price indices are Consumer Price Index, which measures the prices households pay for products and services, and Producer Price Index, which averages the changes in output prices for domestic producers.

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Related Keywords: Geographical Pricing, Perceived Value, Price Elasticity, Value Metric