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EXPLANATION OF TERMINOLOGY, CONTENT
AND METHODOLOGY OF SOME STATISTICAL INDICATORS
ON PRICE INDEX

Consumer price mentions the expense of consumers for a unit of
commodity or service to serve their daily lives. Consumer price shows the retail
price of goods on the market or the cost of services for people’ livings. In case,
commodities are not priced and can be bargained, consumer price is the final price
of commodity paid by consumers.

Consumer price index (CPI) is a relative indicator (%) reflecting the
tendency and change over time in the prices of consumer goods and services
purchased by people.

The representative list of goods and services for measuring CPI consists of
key goods and services which represent for the population’s consumption in a
certain period.

Weight for CPI compilation is the expenditure share for goods and services
groups in the total of population’s expenditure in base year.

Weighted geometric mean Laspeyres formula is used to compile CPI:

n  p t  W i 0
i
I t→ 0 =   0  

p
i= 1 p i 
Where:
I t→ 0 : CPI in the reference period (t) compared to the constant base period
p
(0);

0
t
p , p : Consumer price of product i in the reference period (t) and in the
i
i
constant base period (0) respectively;

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