Indices

Introduction to the module

"Index", "costs" and "prices" are words we often read about in newspapers and hear in the news: "According to figures out by Statistics Finland, the annual change in consumer prices was 1.4 per cent in January." Changes in rents and in the price of milk, petrol and many other commodities are often mentioned in the news. The word "index" frequently crops up in connection with collective bargaining and pension agreements, for instance: "the new wage settlement includes an index clause...", "the pension index was limited to ..." It is useful to know what all this means and how your own finances are affected by these news.

This module of the Online Statistics Course gives you an opportunity to learn about indices and prices and their meaning in your everyday life. The aim of the module is to provide an understanding of the concept of index and different types of indices: price, cost and quantity indices. You will also learn about different formulae used in the calculation of indices and about the uses and the criteria applied in compiling the most important indices in Finland, such as Statistics Finland's consumer price index. Furthermore, there are lessons on the differences between different index formulae and on various kinds of index change rates. The course will also teach you how to use indices to perform various calculations.

This module has been designed primarily with upper secondary students in mind, but it may also be useful for media professionals in journalism and others who need information about indices.

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