Constant price

 Constant Price

 It is the selling price of a product at the level of the previous year.  When the value of the commodity produced at present is calculated on any previous base year, then it is called its fixed price, that is, fixed price is calculated by assuming inflation as constant.  

The price increase for the price of a commodity from the chosen base year till now is called the Price at Constant Price of a product.  Presently in India, the year 2011-12 is considered as the year of constant value (base year). 

☆Trends in growth of national income ☆

This is called the base year.  Thus, the price of a product in India at a constant price is the price in which inflation is assumed to be constant at the 2011-12 level. 

☆Current price ☆ 

 In fact, in those economies where inflation has been high or not under control, it is difficult to estimate the effect of growth and development on poverty alleviation if the product (GDP) is not counted at a constant price.