The current price index (base 1960) is nearly 330. This means that

The correct option is C because a price index does not represent every single item in the economy, nor does it mean every item increased by the exact same margin. Instead, a price index reflects a basket of specific goods and services selected to represent consumption patterns. The index uses a weighted mean, where different items are assigned different levels of importance based on their share in the average consumers budget. A value of 330 against a base of 100 indicates that the average cost of this specific basket has increased by 3.3 times. Options A and D are too specific or broad, while Option B ignores the essential element of weighting that defines how an index is calculated.