Laspeyres Price Index Calculator

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✖Price in Final Period refers to the value of an asset or investment at the end of a specified period.ⓘ Price in Final Period [Pi^F]			+10% -10%
✖Quantity in Base Period refers to the quantity of goods, services, or assets measured at a specific base period for comparison purposes.ⓘ Quantity in Base Period [Qi^B]			+10% -10%
✖Price in Base Period refers to the present value or initial price of an asset or investment at the beginning of a financial analysis or investment period.ⓘ Price in Base Period [Pi^B]			+10% -10%

✖Laspeyres Price Index is a measure used in economics to calculate the average change in the price of a fixed basket of goods and services between two periods.ⓘ Laspeyres Price Index [LPI]

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Laspeyres Price Index Solution

STEP 0: Pre-Calculation Summary

Formula Used

Laspeyres Price Index = ((sum(x,1,2,(Price in Final Period*Quantity in Base Period)))/(sum(x,1,2,(Price in Base Period*Quantity in Base Period))))*100
LPI = ((sum(x,1,2,(Pi^F*Qi^B)))/(sum(x,1,2,(Pi^B*Qi^B))))*100
This formula uses 1 Functions, 4 Variables

Functions Used

sum - Summation or sigma (∑) notation is a method used to write out a long sum in a concise way., sum(i, from, to, expr)

Variables Used

Laspeyres Price Index - Laspeyres Price Index is a measure used in economics to calculate the average change in the price of a fixed basket of goods and services between two periods.
Price in Final Period - Price in Final Period refers to the value of an asset or investment at the end of a specified period.
Quantity in Base Period - Quantity in Base Period refers to the quantity of goods, services, or assets measured at a specific base period for comparison purposes.
Price in Base Period - Price in Base Period refers to the present value or initial price of an asset or investment at the beginning of a financial analysis or investment period.

STEP 1: Convert Input(s) to Base Unit

Price in Final Period: 40 --> No Conversion Required
Quantity in Base Period: 65 --> No Conversion Required
Price in Base Period: 10 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

LPI = ((sum(x,1,2,(Pi^F*Qi^B)))/(sum(x,1,2,(Pi^B*Qi^B))))*100 --> ((sum(x,1,2,(40*65)))/(sum(x,1,2,(10*65))))*100

Evaluating ... ...

LPI = 400

STEP 3: Convert Result to Output's Unit

400 --> No Conversion Required

FINAL ANSWER

400 <-- Laspeyres Price Index

(Calculation completed in 00.004 seconds)

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Created by Vishnu K

BMS College of Engineering (BMSCE), Bangalore

Vishnu K has created this Calculator and 200+ more calculators!

Verified by Kashish Arora

Satyawati College (DU), New Delhi

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Laspeyres Price Index Formula

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What is Laspeyres Price Index?

The Laspeyres Price Index is a measure used in economics to calculate the change in the overall price level of a fixed basket of goods and services over time. It compares the total cost of purchasing the fixed basket of goods at current prices to the total cost of purchasing the same basket of goods at base period prices. The Laspeyres index assumes that consumers continue to buy the same quantities of goods and services over time, ignoring any changes in consumer behavior. This index is valuable for tracking price changes for specific goods and services and is commonly used in economic analysis to monitor inflation or deflationary trends.

How to Calculate Laspeyres Price Index?

Laspeyres Price Index calculator uses Laspeyres Price Index = ((sum(x,1,2,(Price in Final Period*Quantity in Base Period)))/(sum(x,1,2,(Price in Base Period*Quantity in Base Period))))*100 to calculate the Laspeyres Price Index, The Laspeyres Price Index formula is used to calculate a price index by fixing the quantities consumed at a base period. Laspeyres Price Index is denoted by LPI symbol.

How to calculate Laspeyres Price Index using this online calculator? To use this online calculator for Laspeyres Price Index, enter Price in Final Period (Pi^F), Quantity in Base Period (Qi^B) & Price in Base Period (Pi^B) and hit the calculate button. Here is how the Laspeyres Price Index calculation can be explained with given input values -> 400 = ((sum(x,1,2,(40*65)))/(sum(x,1,2,(10*65))))*100.

FAQ

What is Laspeyres Price Index?

The Laspeyres Price Index formula is used to calculate a price index by fixing the quantities consumed at a base period and is represented as LPI = ((sum(x,1,2,(Pi^F*Qi^B)))/(sum(x,1,2,(Pi^B*Qi^B))))*100 or Laspeyres Price Index = ((sum(x,1,2,(Price in Final Period*Quantity in Base Period)))/(sum(x,1,2,(Price in Base Period*Quantity in Base Period))))*100. Price in Final Period refers to the value of an asset or investment at the end of a specified period, Quantity in Base Period refers to the quantity of goods, services, or assets measured at a specific base period for comparison purposes & Price in Base Period refers to the present value or initial price of an asset or investment at the beginning of a financial analysis or investment period.

How to calculate Laspeyres Price Index?

The Laspeyres Price Index formula is used to calculate a price index by fixing the quantities consumed at a base period is calculated using Laspeyres Price Index = ((sum(x,1,2,(Price in Final Period*Quantity in Base Period)))/(sum(x,1,2,(Price in Base Period*Quantity in Base Period))))*100. To calculate Laspeyres Price Index, you need Price in Final Period (Pi^F), Quantity in Base Period (Qi^B) & Price in Base Period (Pi^B). With our tool, you need to enter the respective value for Price in Final Period, Quantity in Base Period & Price in Base Period and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.

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