Price index

percentage change

price level

not

particular value

price level

607.70

Jan 1, 2008

base

624.00

Feb 1, 2008

628.50

March 1, 2008

628.50

April 1, 2008

price index

100

Jan 1, 2008

base

102.68

Feb 1, 2008

103.42

March 1, 2008

103.42

April 1, 2008

prices rose

3.42%

January to March

2.68%

January to February

(624.00 - 607.70)/607.70

on average

each price level

by

given constant

easier

to

deal with

price indexes

a time series of