Index Numbers and Rates of Change
Compare data over time: work out index numbers against a base year, read what they mean, and calculate rates of change like house prices and birth rates.
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Comparing over time 📈
Index numbers and rates of change let us **compare data over time**. An **index number** compares a value to a base year; a **rate of change** measures how fast something rises or falls. You meet both in real measures like the cost of living.
Key terms 📖
Learn these before you begin:
Match each term to its meaning
- Index number
- Base year
- RPI
- CPI
- A value compared to a base year set to 100
- The starting year, set to 100
- The Retail Prices Index
- The Consumer Prices Index
Working out an index number 🧮
To find an index number, divide this year value by the base-year value, then multiply by 100: **index = (value / base-year value) x 100** The base year always has an index of 100. An index above 100 means a rise; below 100 means a fall.
Calculate the index
An interactive activity.
Reading an index
A price index is 120. What does that tell you compared with the base year?
- Prices have risen by 20%
- Prices have fallen by 20%
- Prices have risen by 120%
- Prices have not changed
Rates of change ⚙️
A **rate of change** measures how much something rises or falls, often as a percentage: **rate of change = (change / original value) x 100** Rates are used for house prices, wages, births, deaths and unemployment. A **crude rate per 1000**, such as a birth rate, uses (count / population) x 1000.
Calculate the rate
An interactive activity.
Real measures
Select the TWO real measures that are index numbers or rates used in statistics.
- The Retail Prices Index
- The Consumer Prices Index
- The average height of a class
- The colour of a car
Calculate the birth rate
An interactive activity.
Index and rate frame
An index number compares a value to a _____ year, which is set to _____. An index of 130 means a rise of _____ percent. A rate of change is the _____ divided by the original value, times 100.
Match each index value to what it means
- Index of 100
- Index of 120
- Index of 90
- Index of 105
- The base year, no change
- A 20% rise
- A 10% fall
- A 5% rise
Apply it
An interactive activity.
Explain an index
An interactive activity.