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BasisPrice IndexQuantity Index
MeaningMeasures changes in the price level of commodities over time.Measures changes in the physical quantity of goods produced, consumed or sold.
Formula\(P_{01} = \dfrac{\sum P_1}{\sum P_0}\times 100\)\(Q_{01} = \dfrac{\sum Q_1}{\sum Q_0}\times 100\)
UseMeasures inflation, cost of living, value of money.Measures growth of output, e.g. index of industrial or agricultural production.
ExampleWholesale price index, consumer price index.Index of industrial production.
Doubtly AI · 29 Oct 2026 AI-verified · Nov 2026 Report
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