Price Level (Noun)
Meaning
An index that traces the relative changes in the price of an individual good (or a market basket of goods) over time.
Classification
Nouns denoting communicative processes and contents.
Examples
- The Bureau of Labor Statistics tracks the price level of a typical market basket of goods and services to determine inflation rates.
- To adjust for inflation, economists use a price level index that accounts for changes in the average cost of living over time.
- A rising price level is often associated with an increase in the overall cost of living, making it more expensive for consumers to purchase everyday goods.
- The government's economic indicators closely monitor the price level of staple foods, such as bread and milk, to assess the effects of food inflation.
- Historical data on price level allows researchers to analyze the long-term trends of economic growth and inflation in a particular region or country.