Base Year

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Definition of 'Base Year'

The first of a series of years in an economic or financial index. A base year is normally set to an arbitrary level of 100. Any year can be chosen as a base year, but typically recent years are chosen. New, more up-to-date base years are periodically introduced to keep data current in a particular index.
Investopedia Says

Investopedia explains 'Base Year'

A base year is the year used for comparison for the level of a particular economic index. The arbitrary level of 100 is selected so that percentage changes (either rising or falling) can be easily depicted. For example, to find that rate of inflation (or any other economic index) between 2005 and 2010, one would make calculations using 2005 as the base year, or the first year in the time set.

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'Base Year'

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  • Economic Indicators: Consumer Price Index (CPI) | Investopedia

    http://www.investopedia.com/university/releases/cpi.asp
    ... The current base year for the CPI is 1982, so changes will typically be provided
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  • Economic Indicators: Producer Price Index (PPI) | Investopedia

    http://www.investopedia.com/university/releases/ppi.asp
    ... Like the CPI, the PPI uses a benchmark year in which a basket of goods was measured,
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    ... copper and nickel are worth nearly double since the beginning of the year, and even ...
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  • Economic Indicators: Industrial Production | Investopedia

    http://www.investopedia.com/university/releases/productioncapacity.asp
    ... is used in conjunction with various industry capacity estimates to calculate capacity
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    ... its second quarter went largely unnoticed by its loyal base of shareholders ... providing
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  • Economic Indicators: Gross Domestic Product (GDP) | Investopedia

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    ... Various chain-weighted indexes discussed in earlier topics are used to create
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    ... The base-year market basket, of which the CPI is composed of, is derived from detailed
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