Paasche Price Index

Definition

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

Formula

Paasche Price Index (PPI) = ( Σ P₁Q₁ ÷ Σ P₀Q₁ ) × 100

Where: P₁ = current price, P₀ = base price, Q₁ = current period quantity

Calculator (Single-Commodity Form)

Base Period Price (P₀) (₹ per unit)

Current Period Price (P₁) (₹ per unit)

Current Period Quantity (Q₁)

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

Paasche Price Index