Using the same four commodities and prices as before, and taking the base-year (2020) quantities consumed by the household as weights, compute the Weighted Aggregate price index number for 2024.
| Commodity | (Rs.) | (Rs.) | Base-year quantity |
|---|---|---|---|
| Rice | 30 | 45 | 10 kg |
| Wheat | 25 | 35 | 8 kg |
| Sugar | 40 | 55 | 5 kg |
| Cooking Oil | 120 | 150 | 2 litres |
The Weighted Aggregate Method uses the base-year quantity as the weight for every commodity:
First compute for every commodity (base-year price times base-year quantity):
Then compute for every commodity, using the SAME weight as above but the current-year price:
Substituting:
Notice this weighted figure (138.83) is higher than the Simple Aggregate figure from Worked Example 1 (132.56) — here it happens because Rice and Sugar, which the household buys in the largest quantities (10 kg and 5 kg), both had comparatively large price rises.
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