Quantity and Price Index and the Personal Consumption Expenditures (PCE)

According to Laspeyre’s formula (SAS, n.d), the quantity index and the price index are computed as follows;
Where; - the price of the item at the base period,
- the current period of interest, respectively,
Let -quantity period stand for the base period,
- quantity represent the current interest period being compared to the base period.
According to Focus Economics (n.d) Personal consumption expenditures (PCE) is a measure of consumer spending on goods and services. It includes spending by households and by nonprofit institutions serving households, but excludes government spending.
Gross domestic product (GDP) is a measure of the market value of all final goods and services produced in a given period of time (Callen, 2020). It is also a measure of an economy's size and growth. GDP is usually calculated on an annual basis. To calculate GDP, start by adding up all of the final goods and services produced in the economy in a given period of time. Then, add up all of the value added at each stage of production. Finally, subtract any taxes that were paid on the goods and services.
Formulas of the below computation are available in the excel file.
Fish






2022



2023

Quantity

11



14

prices

4



5

Quantity index(2022 base)

1



1.27273

price index (2022 base)

1



1.25

Quantity index(2023 base)

0.78571



1

price index (2023 base)

0.8



1

Spending on fish

44



70

GDP share of spending

55.70%



33.98%

PCE share of spending

74.58%



53.85%