What Is a Wholesale Price Index?
The wholesale price index reflects the relative number of trends and degrees of transaction prices in the wholesale market.
Wholesale price index
Right!
- Chinese name
- Wholesale price index
- Function
- Reflect changes in wholesale market transaction prices
- Formula
- p1q1
- Index
- Base period fixed weight
- The wholesale price index reflects the relative number of trends and degrees of transaction prices in the wholesale market.
- Introduction to Wholesale Price Index
- A relative indicator that reflects the trend and extent of transaction price changes in the wholesale market.
The wholesale price index should be calculated using the weighted harmonic average index formula of the number of reported options, that is, where K is the single commodity price index; p1q1 is the total wholesale price of various commodities sold during the reporting period.
Under the condition that p1q1 data is not easy to obtain, the arithmetic average index formula weighted by the number of base options can be used to calculate, that is, in the formula, p0q0 is the total wholesale price of various commodities sold in the base period.
When p0q0 is used as the base period fixed weight to compare over the years, the service life of p0q0 should not be too long, generally not more than 5 years. Especially in the case of frequent price changes, more attention should be paid to the degree of authenticity of the phenomenon reflected by the fixed weights in the base period.