Primer on Price Indices

Price, which is the exchange value of a good or service in monetary terms, plays a vital role in the operation of a market economy. Based on the interplay of supply and demand, price changes in one or more commodities relative to another provide important signals to the business community, suggesting what should be produced and in what quantity. Some of the price indices that the PSA generates are Consumer Price Index, Wholesale Price Index and General Retail Price Index.