Price measurement refers to the process of determining the value of goods and services in monetary terms. This involves assessing various factors such as supply and demand, production costs, and market conditions. Accurate price measurement is essential for businesses to set competitive prices and for consumers to make informed purchasing decisions. In economics, price measurement is often linked to concepts like inflation and deflation, which indicate changes in the overall price level over time. Tools such as Consumer Price Index (CPI) and Producer Price Index (PPI) are commonly used to track these changes and provide insights into economic health.