Laspeyres Price Index

Definition

Laspeyres Price Index measures the change in prices of a group of commodities over time by using quantities of the base period as weights. It shows how much more (or less) it would cost to purchase the base-period basket of goods at current prices.

Formula

Laspeyres Price Index (LPI) = ( Σ P₁Q₀ ÷ Σ P₀Q₀ ) × 100

Where: P₁ = current price, P₀ = base price, Q₀ = base period quantity

Calculator (Single-Commodity Form)

Base Period Price (P₀) (₹ per unit)

Current Period Price (P₁) (₹ per unit)

Base Period Quantity (Q₀)

LPI > 100 → Price increase | LPI = 100 → No change | LPI < 100 → Price decrease

Laspeyres Price Index