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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.
The price of the television licence is linked to the consumer price index which means that any increase has implications for inflation.
But the principal value is adjusted twice a year to reflect inflation, as measured by increases in the consumer price index.
It also announced a new mechanism that appeared to link the licence fee to the consumer price index.
A better bet is to predict the price deflator using the consumer price index for non-durable goods.
In the present U.S. system, benefits after retirement are indexed to the consumer price index.

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