A price index is a ratio which compares prices during the current year with prices during a base period.

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A price index is indeed a ratio that compares prices during the current year with prices during a base period. For example, the Consumer Price Index (CPI) compares the prices of a basket of goods and services in the current year with the prices of the same basket of goods and services in a base year.

A Price Index Is a Ratio Which Compares Prices During