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CPI inflation, WPI inflation, PMI index, etc., are some indexes used to track economic activity. Index investing is one of the advantages of index. It can be used to get market returns. Indexes are used to benchmark portfolio, or mutual fund returns to the index returns.

Index numbers are used to show relative values ? a change in a variable relative to a base point in time. Index data uses a base (usually 100). Index numbers have no units. If you wanted to calculate the percentage change from the base you would just subtract 100, e.g. Year 1 = 100, Year 3 = 110.

Create the index Click where you want to add the index. On the References tab, in the Index group, click Insert Index. In the Index dialog box, you can choose the format for text entries, page numbers, tabs, and leader characters. You can change the overall look of the index by choosing from the Formats dropdown menu.

How is the index calculated? The index is calculated by dividing the column % of the crossover cell by the column % of the total cell for the relevant datapoint, and then multiplying by 100. Returning to the example above, we can calculate the index like so: (12.7/9.5)*100=133.7.

Index numbers, such as cost inflation index help in measuring the purchasing power of money at different times between different regions. Such analysis helps the government to frame suitable policies for maintaining or raising the standard of living of the people.

Summary of how to index (if not using Word index functionality at manuscript preparation stage) Make a list of terms to appear. Separate these terms into main entries and subentries. Add the page numbers for every meaningful reference to a selected term. Alphabetize all main entries and main words of subentries.

To calculate the Price Index, take the price of the Market Basket of the year of interest and divide by the price of the Market Basket of the base year, then multiply by 100.