Skip to content
Worked Examples · Example 2
Q.

Construct the price index number for the current year by the simple aggregate method.

CommodityBase-year price p0p_0 (₹)Current-year price p1p_1 (₹)
Rice3036
Wheat2530
Pulses6078
Oil9096
Maharashtra MsbshseTextbookSubjectiveImportance★★★★★
26% · 9/35 Questions
✓ Free question

The simple (unweighted) aggregate price index is

P01=∑p1∑p0×100.P_{01} = \frac{\sum p_1}{\sum p_0} \times 100.

Commodityp0p_0p1p_1
Rice3036
Wheat2530
Pulses6078
Oil9096
Total205240

Here ∑p0=30+25+60+90=205\sum p_0 = 30+25+60+90 = 205 and ∑p1=36+30+78+96=240\sum p_1 = 36+30+78+96 = 240. Therefore

P01=240205×100=1.17073×100=117.07.P_{01} = \frac{240}{205}\times100 = 1.17073\times100 = 117.07.

Independent check. 240−205=35240 - 205 = 35, and 35205×100=17.07%\dfrac{35}{205}\times100 = 17.07\%; adding this to the base 100100 gives 117.07117.07 — the same value, confirming the increase.

✓Final answer

P01≈117.07P_{01} \approx 117.07; on average prices have risen about 17.07%17.07\% over the base year.

Unlock everything free for 14 days

  • Full step-by-step solutions
  • Concept-first explanations
  • Methods, shortcuts & mistakes
  • PYQ mapping + timed mock tests

Full access for 14 days. No credit card required.