Chained index

Chained index

  • A simple index number measures the variation of a determined variable (price, quantity, etc.) over a given period (t) with regard to a base period (0). It is calculated as a quotient between the value of year t and the value of base year 0.

  • A complex index number measures the variation for a group of variables over a period (t) with regard to the base period (0). An example of a complex index is the CPI where the evolution is studied of the prices of different goods and services that constitute the "shopping basket" of a family. In the calculation the prices of different articles do not affect with the same degree of intensity, so different weighting is used, given by the weight of each item in the base year basket.

  • A chained index is a complex index in which the passage of period 0 to period t is fragmented, considering partial increases, which conveys the fact that in the elaboration the weighting used reflect the weights of the different variables in year t-1 instead of in base year 0, and as such the estimation is much more exact and up to date.

  • Other statistical products

    Your feedback.  Help us to make our web better

    How would you rate the information on the site?
    Very useful
    Barely useful
    Not useful at all
    Would you like to make a suggestion?
    Yes, I would