Question

Calculate the simple aggregative price index on the basis of the following data:

$\begin{array}{ccc}\text{Commodity}& \text{Price (Rs) in 2006}& \text{Price (Rs) in 2008}\\ \text{Rice}& 120& 180\\ \text{Wheat}& 80& 100\\ \text{Oil}& 300& 400\\ \text{Pulses}& 130& 180\\ \text{Sugar}& 150& 200\end{array}$

Answer 1

$\begin{array}{ccc}\text{Commodity}& P_0& P_1\\ \text{Rice}& 120& 180\\ \text{Wheat}& 80& 100\\ \text{Oil}& 300& 400\\ \text{Pulses}& 130& 180\\ \text{Sugar}& 150& 200\\ & \sum P_0=780& \sum P_1=1060\end{array}$

$P_{01}=\frac{\sum P_1}{\sum P_0}\times 100=\frac{1060}{780}\times 100=135.89$