Whay is value index number

Value index number is an index number that measures the changes in the level of value of items (i.e. the product of the quantity, and their prices) consumed during the year under reviews with reference to the level of value of the items consumed in the base year. 

V01 = (∑P₁Q₁ / ∑P₀Q₀) X 100

 V01 = Value index of the current year on the basis of the base year’s value.

∑P₁Q₁ = Total of the values of the items consumed in the current year.

∑P₀Q₀ = Total of the values of the items consumed in the base year.

Regards