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Meaning / Definition of

Elementary Aggregate

Categories: Economics,

The lowest level of aggregation for which value data are available and used in the calculation of the producer price index (PPI). Elementary aggregates consist of relatively homogeneous sets of goods or services. Their values are used as weights when averaging the elementary price indices associated with them to obtain indices for higher-level aggregates. They may also serve as strata from which the products selected for pricing are sampled.

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