price index

noun

: an index number expressing the level of a group of commodity prices relative to the level of the prices of the same commodities during an arbitrarily chosen base period and used to indicate changes in the level of prices from one period to another

Examples of price index in a Sentence

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The personal consumption expenditures price index, a measure of consumer spending on goods and services, rose 2.6% from a year ago. Steve Kopack, NBC news, 31 July 2025 The Personal Consumption Expenditures price index — the inflation gauge the Federal Reserve uses for its 2% target rate — rose 0.3% on a monthly basis, which lifted the annual rate to 2.6%, the highest since February. Alicia Wallace, CNN Money, 31 July 2025 Inflation also ticked up to a 2.6 percent annual increase in June from 2.3 percent in the Commerce Department’s personal consumption expenditures price index, exceeding expectations of economists for a 2.5 percent increase. Alex Gangitano, The Hill, 31 July 2025 Key Facts Annual inflation was 2.8% in June, according to core personal consumption expenditures (PCE) price index data released Thursday by the Bureau of Economic Analysis, surpassing consensus economist forecasts of 2.7%, according to FactSet. Ty Roush, Forbes.com, 31 July 2025 See All Example Sentences for price index

Word History

First Known Use

1886, in the meaning defined above

Time Traveler
The first known use of price index was in 1886

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Cite this Entry

“Price index.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/price%20index. Accessed 21 Aug. 2025.

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