Question

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

Commodity	Unit	Base Year Price (in ₹)	Current Year Price (in ₹)
Wheat	kg	28	36
Rice	kg	40	56
Milk	litre	35	45
Clothing	meter	82	104
Fuel	litre	58	72

Answer 1

Commodity	Unit	Base Year Price (in ₹)	Current Year Price (in ₹)
Wheat	kg	28	36
Rice	kg	40	56
Milk	litre	35	45
Clothing	meter	82	104
Fuel	litre	58	72
Total		243	313

From the table, ∑ p₀ = 243, ∑ p₁ = 313

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

`= 313/243 xx 100`

= 128.81