What Is an Import Price Index?

The import price index is also called the import price index. It is an index indicating how the average price of a group of commodities changes in a given period of time.

Import price index

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The import price index is also called the import price index. It is an index indicating how the average price of a group of commodities changes in a given period of time.

Chinese name

Import price index

Alias

Import price index

Purpose

Changes in the average price of a group of goods

Limit

In a given period

Basic definition

When calculating the average, the prices of different commodities are generally weighted according to their economic importance. (For example, when calculating the consumer price index, the weighting is based on the share of each commodity in the total consumption expenditure). The import price index refers to an index of the average price change of a country's imported goods within a certain period of time.

Economic indicators that reflect the direction, trend, and extent of commodity price levels in different periods. It is a kind of economic index, usually expressed as the relative number of the relative ratio between the reporting period and the base period. Price index is a tool for studying the dynamic changes of prices. It provides a basis for formulating, adjusting and checking various economic policies, especially price policies.

An increase in a country's import price index indicates that the country's economic inflationary pressure is rising; vice versa.