How To Calculate Comparable Prices

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How To Calculate Comparable Prices
How To Calculate Comparable Prices

Video: How To Calculate Comparable Prices

Video: How To Calculate Comparable Prices
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One of the means of statistical analysis of socio-economic development is the comparison of various indicators for different years. However, the realities of the market economy are such that prices for the same product are constantly rising. Therefore, comparison in absolute terms loses all meaning. In this case, comparable prices apply.

How to calculate comparable prices
How to calculate comparable prices

Instructions

Step 1

Comparable prices are prices of a certain year or for a certain date, conventionally taken as a base when comparing the volume of production, turnover and other economic indicators in monetary terms for different periods. The use of comparable prices makes it possible to exclude the influence of inflation on the dynamics of production volumes, profit indicators, labor productivity, capital productivity, i.e. for all indicators that use the value change in the volume of production.

Step 2

To illustrate the use of comparable prices, refer to actual examples. In statistical tasks, it is often required to bring price data to a comparable value. In this case, a known percentage of inflation for a certain period is usually indicated. For example, it is required to compare the prices of 2008 and 2010, if it is known that the price of products in 2010 was 126,000 rubles, and inflation in comparison with 2008 increased to 20%. To solve the problem, adjust the 2010 price by 20%, i.e. 126,000 / 1, 2 = 105,000 rubles. Thus, the volume of products produced in 2010 in the amount of 126,000 rubles. corresponds to the volume of 105,000 rubles. in 2008.

Step 3

Similarly, comparable prices are calculated based on the forecasted values. For example, it is known that inflation by 2012 will be 15% relative to 2010 prices. Returning to the given conditions, it is required to calculate the price level of 2012 while maintaining the same volume of production. To solve the problem, make the price indexation in 2010 by 15%, i.e. 125,000? 1, 15 = 143,750 rubles.

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