Meaning of the word "price index" in English

What does "price index" mean in English? Explore the meaning, pronunciation, and specific usage of this word with Lingoland.

price index

US /ˈpraɪs ˌɪn.dɛks/
UK /ˈpraɪs ˌɪn.dɛks/

Noun

a measure of the average change in prices of a basket of goods and services over time

Example:
The consumer price index rose by 0.5% last month.
Economists closely monitor the price index to gauge inflation.