Question

To construct a price index, all of the following are needed EXCEPT

a. a base year.
c. a market basket.
b. the current inflation rate.
d. the price of market basket items.

Answer 1

I believe the answer is: current inflation rate

Price index refers to the numbers that is used to measure a change of price for a product within one period with another, based on its performance in the market.

Even though inflation rate can affect product's price, it does not related to how the product perform in the market because inflation only affect strength of currency.

Answer 2

To construct a price index, all of the following are needed except the current inflation rate.