Hinnaindeksi

Hinnaindeksi, often translated as price index, is a statistical measure that tracks the change in the price level of a basket of goods and services over time. It is used to assess inflation or deflation within an economy. The most common type is the consumer price index (CPI), which measures the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services. Other types of price indexes exist, such as the producer price index (PPI), which measures the average change over time in the selling prices received by domestic producers for their output, and the GDP deflator, which measures the price level of all new, domestically produced, final goods and services in an economy.

The construction of a price index involves selecting a representative basket of goods and services, determining their base year prices, and then calculating the cost of that same basket in subsequent periods. The index is typically set to 100 in the base year. A value above 100 indicates a price increase (inflation) since the base year, while a value below 100 indicates a price decrease (deflation). Price indexes are crucial tools for policymakers, economists, and businesses to understand economic trends, adjust wages and contracts, and inform monetary and fiscal policy decisions. They help to gauge the purchasing power of money and the overall health of an economy.