Price Index

A price index is an index number showing how the price of an item has changed from a base period, calculated as $\frac{\text{price in given period}}{\text{price in base period}}\times100$. For example, a price index of 120 means the price has risen by 20% since the base period.

You meet Price Index in the Index Numbers chapter of SPM Additional Mathematics. Knowing the term precisely matters in the exam: questions often hinge on reading a keyword correctly, and because SPM marking is analytic, using the right definition in your working helps secure method marks.

Our teachers make sure a student can not only recite what Price Index means but use it fluently in a full solution.

Because the SPM Add Math paper is bilingual (BM/EN), it helps to know this term in each language: Price Index (EN) · Indeks Harga (BM) · 价格指数 (中文)

Other key terms from the Index Numbers chapter you may want to check:

• Index Number
• Composite Index
• Weightage
• Base Year