General Price level is an index that reflects all the prices of goods and services.
It is difficult to obtain a meaningful value on the general price level by simply adding the value of each good expressed in terms of rupees and cents.
Therefore should obtain stated value of indices instead of value in rupees.
Value of any variable that varies with time can be expressed through indices.
Price indices are used to indicate the percentage changes of values of a time series compared to the base year.
When the base year value is considered as 100 the amount of percentage changes of time series values for other years can be calculated.
