Table 2
Importance of expenditure weights
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| Item | Price ratio base = 100 | Equal weights | Item index | Weights by expenditure | Item index |
|---|---|---|---|---|---|
| percent | percent | ||||
| Milk | 105 | 50 | 53 | 90 | 95 |
| Waxed paper | 150 | 50 | 75 | 10 | 15 |
| Post Index | … | … | 128 | … | 110 |
Note(s):
Calculation of Item Index = price ratio X weights and calculation of
Post Index = Item index (milk) + Item index (waxed paper).
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