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What is a price index?

What is a price index? Here are some definitions.

Noun
  1. (economics) A statistical estimate of the level of prices of some class of goods or services.
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In recent years, software publishers have hit consumers with a double whammy that very likely escapes the consumer price index.
Whereas benefits are indexed to consumer price index inflation, revenue growth is driven by real wage growth.
Index the 60 per cent of median income to the consumer price index, and by 2001, only 2 per cent of people fell below the line.
By contrast, salary increases for the same period in 2001 increased by 2.4 per cent against the consumer price index.
But the Fed also reacts to recent inflation as gauged by the consumer price index.
In the present U.S. system, benefits after retirement are indexed to the consumer price index.

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