How are the Import/Export Price Indexes interpreted?
An index is a tool that simplifies the measurement of movements in a numerical series. Movements are measured with respect to the base period when the index is set at 100. Currently, most Import/Export Price Indexes have an index base of 2000=100 and price changes are measured in relation to that figure. For example, a November 2004 Import Price index of 107.0 for beverages indicates that there has been a 7 percent increase in price since 2000. Similarly, a November 2004 Import Price Index of 73.0 for computers means that there has been a 27 percent decrease in price since 2000. While movements between two dates can be expressed as index point changes, it is more useful to express the movements as percent changes. As the example below indicates, the Export Price Index for Food and Live Animals was 118.0 in November 2004 and 115.3 in November 2003, an index point increase of 2.7. Using the formula shown, it is determined that this index point increase represents a 2.3 percent price incr
