Definition: Divisia index

Consumer Price Index

A price or quantity index that treats both prices and quantities as continuous functions of time. By differentiating with respect to time, the rate of change in the value of the aggregate in question is partitioned into two components, one of which is the price index and the other the quantity index. In practice, the indices cannot be calculated directly, but it may be possible to approximate them by chain indices in which indices measuring the changes between consecutive periods are linked together.
Source:
International Labour Organization (ILO), International Monetary Fund (IMF), Organisation for Economic Co-operation and Development (OECD), Statistical Office of the European Communities (Eurostat), United Nations (UNECE), The World Bank, Consumer Price Index Manual: Theory and Practice, Geneva, August 2004
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