DEFINITION of 'Base Period'
A particular time period for which data is gathered and used as a benchmark against which economic data from other periods is measured.
Also referred to as "reference period."
Next Up
BREAKING DOWN 'Base Period'
Think of this as a yardstick for economic data. For example, if a price index has a base year of 1990, current prices are being compared to prices in that time period.
RELATED TERMS

Gross Domestic Product  GDP
The monetary value of all the finished goods and services produced ... 
BaseYear Analysis
1. The analysis of economic trends in relation to a specific ... 
Consumer Price Index  CPI
A measure that examines the weighted average of prices of a basket ... 
Index
A statistical measure of change in an economy or a securities ... 
Economy
The large set of interrelated economic production and consumption ... 
PutCall Parity
A principle that defines the relationship between the price of ...
Related Articles

Economics
Economics Basics
Learn economics principles such as the relationship of supply and demand, elasticity, utility, and more! 
Options & Futures
The Consumer Price Index: A Friend To Investors
As a measure of inflation, this index can help you make key financial decisions. 
Options & Futures
Explaining The World Through Macroeconomic Analysis
From unemployment and inflation to government policy, learn what macroeconomics measures and how it affects everyone. 
Retirement
Economic Indicators To Know
The economy has a large impact on the market. Learn how to interpret the most important reports. 
Mutual Funds & ETFs
Top 3 Muni California Mutual Funds
Discover analyses of the top three California municipal bond mutual funds, and learn about their characteristics, historical performance and suitability. 
Investing Basics
What Does In Specie Mean?
In specie describes the distribution of an asset in its physical form instead of cash. 
Economics
Calculating Cross Elasticity of Demand
Cross elasticity of demand measures the quantity demanded of one good in response to a change in price of another. 
Fundamental Analysis
Emerging Markets: Analyzing Colombia's GDP
With a backdrop of armed rebels and drug cartels, the journey for the Colombian economy has been anything but easy. 
Investing
What is Descriptive Statistics?
Descriptive statistics is the term applied to meaningful data analysis. 
Fundamental Analysis
Create a Monte Carlo Simulation Using Excel
How to apply the Monte Carlo Simulation principles to a game of dice using Microsoft Excel.
RELATED FAQS

Is Colombia an emerging market economy?
Colombia meets the criteria of an emerging market economy. The South American country has a much lower gross domestic product, ... Read Full Answer >> 
What assumptions are made when conducting a ttest?
The common assumptions made when doing a ttest include those regarding the scale of measurement, random sampling, normality ... Read Full Answer >> 
What is the utility function and how is it calculated?
In economics, utility function is an important concept that measures preferences over a set of goods and services. Utility ... Read Full Answer >> 
What are some of the more common types of regressions investors can use?
The most common types of regression an investor can use are linear regressions and multiple linear regressions. Regressions ... Read Full Answer >> 
What types of assets lower portfolio variance?
Assets that have a negative correlation with each other reduce portfolio variance. Variance is one measure of the volatility ... Read Full Answer >> 
When is it better to use systematic over simple random sampling?
Under simple random sampling, a sample of items is chosen randomly from a population, and each item has an equal probability ... Read Full Answer >>