Definition: Laspeyres price index

Category: Prices

An index formula used in price statistics for measuring the price development of the basket of goods and services consumed in the base period. The question it answers is how much a basket that consumers bought in the base period would cost in the current period. It is defined as a fixed-weight, or fixed-basket, index that uses the basket of goods and services and their weights from the base period. It is also known as a "base-weighted index". http://epp.eurostat.ec.europa.eu/statistics_explained/index.php/Glossary:Laspeyres_price_index