ECONOMICS PROJECT – TERM 2

INDEX NUMBERS

BY – SAMEER SINDHI 11-H

 Acknowledgment
I would like to express my sincere gratitude to Principal Ms.
Rashmi Nandkeolyar for her unwavering support and guidance
throughout my academic journey. Her leadership has been a
constant source of inspiration, and I am truly thankful for the
opportunities she has provided.
I am also indebted to Ms.Poornima Ghosla for her invaluable
contributions and mentorship. Her dedication to fostering a
positive learning environment and her insightful guidance have
played a significant role in shaping my educational
experience. Your influence has left an indelible mark on my
educational journey, and I am truly grateful for the impact
you've had on my growth and development.
INDEX

1)INTRODUCTION

2)CONSUMER PRICE INDEX (CPI)

3) METHODS TO CALCULATE CPI
4) CPI FOR DIFFERENT GOODS
5)BIBLIOGRAPHY
 INTRODUCTION
Index Numbers are statistical measures used to
represent relative changes in a group of related
variables over time or across different categories.
These numbers serve to simplify complex economic
data, making it more comprehensible. Index
numbers help analyze trends in economic
variables, such as inflation or production
Consumer Price Index

The Consumer Price Index (CPI) is a statistical measure that

gauges the average change in prices of a predetermined
basket of goods and services consumed by urban households
over time. It serves as an essential tool for assessing
inflation and helps policymakers, economists, and the
public understand the overall cost-of-living trends.
METHODS FOR CPI
1.Aggregate Expenditure Method
Consumer Price Index
= (∑p1q0)/(∑p0q0) x 100
Here, p1 = Prices of the
current year p0 = Prices of
the base year q0 = Quantity
consumed in base year.
2. Family Budget Method
Consumer Price Index =∑PW/∑W
Where, P= {p1}/{p0} x 100
R=Current year’s price relative of
various items V = Value weights
or p0q0
CPI FOR DIFFERENT GOODS

Aggregative Expenditure Method

->CPI Calculation:
-> ∑p1q0=24814 ->
∑p0q0= 12877 =>
{∑p1q0}/{∑p0q0}x
100= 192.7
Family budget method:

->CPI Calculation: -
∑RW=2410462 -
∑W= 12460
=>∑RW/∑w = 192.7
bibliography
1.https://www.investopedia.com/terms/c/consumerpric
eindex.asp
2.https://en.wikipedia.org/wiki/Consumer_price_index
3.https://www.ilo.org/CPI/doc/ch1.pdf
4.https://www.fool.com/terms/c/consumer-price-index/
5.https://7esl.com/cpi-meaning/