price index


Definition of price index

: 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

Recent Examples on the Web For example, suppose that under an inflation target, the price index is 100 today. Joshua R. Hendrickson, National Review, "The Fed Changed Its Approach to Inflation. Will It Change Its Policies?," 15 Jan. 2021 The cereal price index posted a more modest 1.1% rise in December from the month before. Crispian Balmer Reuters, Star Tribune, "World food price index rises for seventh straight month," 9 Jan. 2021 Economists polled by The Wall Street Journal project the consumer-price index will rise 0.75% from a year earlier, which would be the weakest inflation reading in the past decade. Wsj Staff, WSJ, "Economy Week Ahead: Inflation, GDP and Jobless Claims," 8 Nov. 2020 StreetEasy’s Brooklyn price index held steady at last August’s level of $956,900. Oshrat Carmiel,, "Brooklyn Is Hot With NYC Homebuyers Seeking Bang for the Buck," 24 Sep. 2020 The Fed goal is based on the Commerce Department’s personal consumption expenditures price index, which tends to rise slightly more slowly than CPI on average. Reade Pickert, Fortune, "Investors are pricing in inflation for 2021. Here’s why it’s likely to be a mirage," 7 Dec. 2020 The consumer-price index, which measures what Americans pay for household items such as lawn mowers and services such as eye care, grew a seasonally adjusted 0.2% in November compared with October. Eric Morath, WSJ, "U.S. Unemployment Claims Rise to Highest Level Since September," 10 Dec. 2020 The core price index, which excludes more-volatile food and energy costs, increased 1.4%. Reade Pickert,, "U.S. Consumer Spending Rose in October While Incomes Declined," 25 Nov. 2020 The country’s producer-price index, a gauge of factory-gate prices, likely declined 2% in October compared with September’s 2.1% fall. Wsj Staff, WSJ, "Economy Week Ahead: Inflation, GDP and Jobless Claims," 8 Nov. 2020

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'price index.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

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First Known Use of price index

1886, in the meaning defined above

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The first known use of price index was in 1886

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Last Updated

22 Jan 2021

Cite this Entry

“Price index.” Dictionary, Merriam-Webster, Accessed 26 Jan. 2021.

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