📈 Four Index Types
Laspeyres
Uses base period quantities as weights. Tends to overstate inflation.
Paasche
Uses current period quantities. Tends to understate inflation.
Fisher
Geometric mean of both. Most accurate overall measure.
CPI-Style
Weighted average approach used by government statistics.
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💼 Key Applications
💰
Inflation Analysis
Track price changes over time
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Cost of Living
Consumer basket analysis
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Procurement
Supplier price monitoring