price index

noun

: an index number expressing the level of a group of commodity prices relative to the level of the prices of the same commodities during an arbitrarily chosen base period and used to indicate changes in the level of prices from one period to another

Examples of price index in a Sentence

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Wrapping things up on Friday is the PCE price index, the Fed’s favorite measure of inflation. Jeff Marks, CNBC, 21 Feb. 2025 Easier healthcare service costs, for example, could end up helping to pull a different measure of inflation lower, one that the Federal Reserve considers a better measuring stick than the consumer price or producer price indexes. Stan Choe, Los Angeles Times, 13 Feb. 2025 Investors will get a look at the producer price index on Thursday morning, followed by the U.S. import and export price indexes on Friday. William Gavin, Quartz, 12 Feb. 2025 In the months since the Fed’s first rate cut in September, though, the US government’s two main measures of inflation, the CPI and the Personal Consumption Expenditures price index, have remained stubbornly elevated. Samantha Delouya, CNN, 11 Feb. 2025 See All Example Sentences for price index

Word History

First Known Use

1886, in the meaning defined above

Time Traveler
The first known use of price index was in 1886

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Cite this Entry

“Price index.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/price%20index. Accessed 2 Mar. 2025.

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