# Simple Aggregate Price Index

The method in which sum of prices of all the commodities in the current period is divided by the total prices in the base period is called unweighted aggregate index. Since simple aggregate index does not give relative importance to the commodities therefore it is neither meaningful nor representative index. The formula for calculating a simple aggregate price index is given below.

Problem: Calculate price index using simple aggregate method taking

• 1975 as base year
• Chain base method

Solution:

### 19 responses to Simple Aggregate Price Index

jack says:

thank you

mbalectures says:

Currently we are working on other categories to complete our threshold of 5o articles each category. As soon as we complete our threshold of 50 we will come up with through explanation of each article.

eche says:

Was very easy to comprehend.But more example

monica says:

Thank u much 🙂 great stuff

thank’s!but we need more example.God Bless you.

Tinashe says:

Well simplified and easy to grasp…thank you very much but there is need to include different types of examples.

thank’s lecturers but we need more examples to get it cleared

riya shrestha says:

thank u so much u have no idea how much have u helped metomorrow is my exam and u saved my life thnxx
xoxo

kingsley. 4rm YABATECH. says:

thank’s more example.

Abbie says:

Very explicit….What are the shortcomings of this approach?

cynthia says:

thxz

Ana Moa says:

can you explain cause i’m still confusing

kuku says:

Wow dats grt vry helpful indeed we need more examples

kuku says:

nyc

Monday Ruth says:

Thanks so much. God bless

A S Umar says:

Good work