Editing Price index (section)

{{Short description|Normalized average of price changes for goods and services}}
{{Use dmy dates|date=December 2023}}A '''price index''' (''plural'': "price indices" or "price indexes") is a normalized [[average]] (typically a [[Weighted mean|weighted average]]) of [[price]] relatives for a given class of [[Good (economics)|goods]] or [[Service (economics)|services]] in a specific region over a defined time period. It is a [[statistic]] designed to measure how these price relatives, as a whole, differ between time periods or geographical locations, often expressed relative to a base period set at 100. 

Price indices serve multiple purposes. Broad indices, like the [[Consumer price index]], reflect the economy’s general [[price level]] or [[cost of living]], while narrower ones, such as the [[Producer price index]], assist producers with pricing and business planning. They can also guide investment decisions by tracking price trends.