What’s a price index and why do we need one?

A price index is a tool to measure the change in price for goods and services over time. Price indices have a long history, and are an important and widely used macroeconomic statistic. This section of the course begins by introducing what a price index is, what they’re used for, and why a price index is needed at all.

📖 PPI manual: Chapter 1, sections A, K; Chapter 2, sections A, B, D1, D2, E, F.

📖 CPI manual: Chapter 1, paragraphs 1.8–1.12; Chapter 2.