Question

Find the Price Index Number using the Simple Aggregate Method in the following example.

Use 1990 as base year in the following problem.

Commodity	Unit	Price (in ₹) for year 2000	Price (in ₹) for year 2006
Butter	kg	27	33
Cheese	kg	30	36
Milk	litre	25	29
Bread	loaf	10	14
Eggs	doz	24	36
Ghee	tin	250	320

Answer 1

Commodity	Unit	Price (in ₹) for year 2000	Price (in ₹) for year 2006
Butter	kg	27	33
Cheese	kg	30	36
Milk	litre	25	29
Bread	loaf	10	14
Eggs	doz	24	36
Ghee	tin	250	320
Total		366	468

From the table, ∑ p₀ = 366, ∑ p₁ = 468

Price Index Number (P₀₁) = `(sum "p"_1)/(sum "p"_0) xx 100`

`= 468/366 xx 100`

= 127.87