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)CO NSUMER 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/