Glossary:Fisher price index
The Fisher price index is an index formula used in price statistics for measuring the price development of goods and services, on the basis of the baskets from both the base and the current period. It is defined as the geometric average of the Laspeyres price index (which only uses the base period basket) and the Paasche price index (which only uses the current period basket). For this reason, the Fisher price index (named after American economist Irving Fisher) is also known as the "ideal" price index.
The choice of a price index formula (Laspeyres, Paasche or Fisher) in a particular case is partly determined by the data available. The Fisher price index requires more data than both others and as a result may often be impracticable.
- European Price Statistics - an overview - 2008 edition