Prices and production, the most familiar being the retail prices index, or cost-of-living index. In

Principle, the method of indexation is the same for all indices and, therefore, can be explained by

Reference to this price index. The price of each commodity or service included in the index б

Recorded in the current period (say, 2004) and divided by its price in the base period (say, 2000), to

obtain a price relative for each item. Each price relative is then multiplied by a weight and all the

Items summed and averaged. The weights used may be either the amount spent on each item in the

current period (2004) — a current-weighted index, or Paasche index, or the amount spent on each

item in the base period (2000) — a base-weighted index, or Laspeyres index.

Commentary and Notes to Text 17.7.1.1

Index number — числовой индекс (показатель)

Weighted — взвешенный(-ое)

Average — средняя величина

Attribute — характерный признак (экономический)

Retail prices index — индекс розничных цен

Cost-of-living index — индекс прожиточного минимума

Price index — ценовой индекс

Relative prices — относительные цены

To multiply — умножать

Current-weighted index — текущий взвешенный индекс

Base-weighted index — взвешенный индекс, определяемый с учетом показателей базового

Года

17.7.1.2. Read the text “Determining the Index Number.” On the grounds of the suggested method

Make up your own example and relate it.