Index (economics)

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This article is about index in an economics and finance sense. For other uses, see Index.

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In economics and finance, an index is a single number calculated from an array of prices or of quantities. Examples are a price index, a quantity index (such as real GDP), a market performance Index (such as a labour market index / job Index or a stock market index). Values of the index in successive periods (days, years, etc.) summarize level of the activity over time or across economic units (regions, countries, etc.).

Consumer price indexes can be used, among other things to adjust salaries, bonds interest rates, tax thresholds for inflation.

Some investment funds (index funds) manage their portfolio so that their performance mirrors (tracking) the performance of a stock market index or a sector of the stock market.