Base Period

AAA

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."

INVESTOPEDIA EXPLAINS '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
  1. Base-Year Analysis

    1. The analysis of economic trends in relation to a specific ...
  2. Economy

    The large set of inter-related economic production and consumption ...
  3. Consumer Price Index - CPI

    A measure that examines the weighted average of prices of a basket ...
  4. Gross Domestic Product - GDP

    The monetary value of all the finished goods and services produced ...
  5. Index

    A statistical measure of change in an economy or a securities ...
  6. Current Liquidity

    The total amount of cash and unaffiliated holdings compared to ...
Related Articles
  1. Economics Basics
    Economics

    Economics Basics

  2. The Consumer Price Index: A Friend To ...
    Options & Futures

    The Consumer Price Index: A Friend To ...

  3. Explaining The World Through Macroeconomic ...
    Options & Futures

    Explaining The World Through Macroeconomic ...

  4. Economic Indicators To Know
    Retirement

    Economic Indicators To Know

Hot Definitions
  1. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  2. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  3. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  4. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  5. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  6. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
Trading Center