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In economic statistics, flows and stocks of goods and services are measured at the prices that are valid for the period being observed. These are referred to as current prices or current value in a particular currency. In addition to knowing the value in a specific period, it is useful to know the trend in the value from one period to another. This is described using a value index, which measures percentage changes in the current monetary value from one period to another, for a particular group of goods and services. For many analytical purposes however, it is not sufficient to know the current monetary value and its trend, but also how this trend can be accounted for by changes in prices and volumes. The figures in the National Accounts are constructed such that value index = price index x volume index. |