price index

This term is primarily used in economic and financial contexts to quantify inflation or deflation. It functions as a benchmark for adjusting wages, pensions, or contracts to maintain purchasing power over time. While it describes a mathematical average, it is often discussed as a singular indicator of economic health.

In professional reporting, it is frequently paired with specific modifiers like "consumer" (CPI) or "producer" (PPI) to specify which sector of the economy is being measured. It is distinct from a simple price list because it represents a weighted average of a representative basket of goods rather than individual item costs.