Articles on: Commodity Price Trends

Using Price Indexes

Checking Price Variations with Intratec Commodity Price Trends

There are basically two ways subscribers of Commodity Price Trends can correct a commodity price over time: using Price Indexes directly or checking Price Indexes Changes - both such options can be accessed in the control right above the chart in the commodity page, under the option "View".

"Price Indexes Changes" View

The "Price Indexes Changes" View shows price changes, in percentage terms, on a month-over-month or year-over-year basis. By way of illustration, by hovering the mouse over the bars in the chart you can view the percentage price changes, from one month (or year) to another.

"Price Indexes" View

The "Price Indexes" show the price indexes themselves, which are indicators measuring variations in prices in a numerical series in relation to the base period (January 2007), when the index is set at 100. By hovering the mouse over the data series you can view the value of the index in the respective world region, in the frequency defined (monthly, quarterly or yearly):

Using Price Indexes: Suppose you know the price of a commodity A in Country X, in January 2020, and need to update it to May 2020. To update the price from January 2020 to May 2020, just multiply the price by the ratio of this commodity A Price Index in the respective region of Country X at May 2020 over the commodity A Price Index in the same region at January 2020, as expressed in the equation below:
Commodity A Price[May 2020] = Commodity A Price[Jan 2020] * (Commodity A Price Index[May 2020] / Commodity A Price Index[Jan 2020])

Updated on: 03/05/2023