Prices

Price is a measure for living costs, and the indexes are primarily used to track the inflation. The consumer price index is a meas ure for actual prices paid by consumers for goods and services. It mirrors the sum of changes in consumer prices, including those caused by changes in taxes, duties and subsidies. Hence, it is a compound expression of pure market changes and legislative price changes.

The population´s actual spending power is called purchasing power or real income. Spending power is closely related to the balance between income level and price level. Real income increases if income growth is higher than price growth.