What is the difference between a price level and a price index?

What will be an ideal response?

The price level is a weighted average of the prices of the goods and services that people consume. The price index is a ratio of a price level at one point in time to the price level in some base year, with the ratio usually multiplied by 100 . Thus, if the price level in a given year is 30% higher than the price level in the base year, the price index would be 130 . Price levels give you information about the purchasing power of a currency. Price indexes give you information about the rate of inflation between two points in time.