# Paasche Price Index 1 definitions

### Paasche Price Index

A price index defined as a fixed weight, or fixed basket, index which uses the basket of goods and services of the current period. The current period serves as the weight reference period and the base period as the price reference period. It is identical with a weighted harmonic average of the current to base period price relatives using the value shares of the current period as weights.

Also called a “current weighted index”.

48.6

High School