What is "price level"

n. (context economics English) An index of the average market price of selected goods weighted according to certain criteria.

n. an index that traces the relative changes in the price of an individual good (or a market basket of goods) over time [syn: price index]

The general price level is a hypothetical daily measure of overall prices for some set of goods and services (the consumer basket), in an economy or monetary union during a given interval (generally one day), normalized relative to some base set. Typically, the general price level is approximated with a daily price index, normally the Daily CPI. The general price level can change more than once per day during hyperinflation.