Reference Base Period

DEFINITION of 'Reference Base Period'

A year in which the Consumer Price Index is equal to 100, a reference base period that serves as a benchmark for future periods, allowing economists to judge levels of inflation. Currently, the reference base period is set between 1982 and 1984.

BREAKING DOWN 'Reference Base Period'

When a year is assigned a price level from the CPI, the reference base period can be used to convey how much inflation occurred. For example, if the current year has a CPI level of 115, this would mean that prices today have increased by 15% (115-100) from the base period of 1982-1985.

RELATED TERMS
  1. Base Period

    A particular time period for which data is gathered and used ...
  2. Basing

    A period in which a stock or other traded security is showing ...
  3. Base Year

    The first of a series of years in an economic or financial index. ...
  4. Base Effect

    The consequence of abnormally high or low levels of inflation ...
  5. Closing Range

    The band of prices that a security trades at in a specified period, ...
  6. Headline Inflation

    The raw inflation figure as reported through the Consumer Price ...
Related Articles
  1. Professionals

    Asking For A Reference: Who, How, When And Where?

    It can be awkward and a bit of a pain, but having the right references is an important step to landing that new job or being accepted to the school of your choice.
  2. Personal Finance

    Timeless Ways To Protect Yourself From Inflation

    Inflation is a natural part of modern life - but there are some ways to cover your assets.
  3. Markets

    Macroeconomics: Inflation

    By Stephen Simpson Inflation is a key concept in macroeconomics, and a major concern for government policymakers, companies, workers and investors. Inflation refers to a broad increase in prices ...
  4. Markets

    A Primer On Inflation

    Inflation has a negative connotation, but is it all bad or does it offer some tangible benefits?
  5. Markets

    The Money Market: A Look Back

    Learn how past inflationary periods can predict future real rates of return for cash investments.
  6. Investing

    What's an Average Collection Period?

    Average collection period is an accounting term referring to the average number of days between a sale made on credit, and receipt of the payment. Businesses monitor this number to make sure ...
  7. Markets

    Should You Worry About the U.S Inflation rate?

    Understand how inflation is measured, how U.S. inflation compares to other countries, and if investors should be concerned with rising inflation.
  8. Retirement

    Why Inflation Is Still A Threat To Your Retirement

    One reason people tend to underestimate their retirement saving needs is that they fail to properly account for the impact of inflation.
  9. Retirement

    Inflation: What Is Inflation?

    Inflation is defined as a sustained increase in the general level of prices for goods and services. It is measured as an annual percentage increase. As inflation rises, every dollar you own buys ...
  10. Markets

    What Causes Inflation in the United States

    Inflation is the main catalyst behind U.S monetary policy. But what causes this phenomenon of sustained rising prices? Read on to find out.
RELATED FAQS
  1. What's the highest year-over-year inflation rate in the history of the U.S.?

    Learn about periods with the highest inflation in U.S. history and the mandated role of the U.S. Federal Reserve in controlling ... Read Answer >>
  2. When does the holding period on a stock dividend start?

    Understand the difference between qualified and unqualified stock dividends, and when the holding period for qualified dividends ... Read Answer >>
  3. How is cash flow affected by Average Collection Period?

    See how reducing a company's average collection period can help cash flow, and learn why collections practices are so important ... Read Answer >>
  4. Over what period should I use dollar cost averaging?

    Learn why dollar cost averaging should be implemented over a period of time that is 12 months or less in order to avoid missing ... Read Answer >>
  5. How do you find the break-even point using a payback period?

    Understand what a company's breakeven point is and what its payback period is. Learn why a company would want to track both ... Read Answer >>
  6. How does the Bureau of Labor Statistics determine the Consumer Price Index (CPI)?

    Changes in the average price level of more than 200 goods and services across the U.S. economy are used to determine the ... Read Answer >>
Hot Definitions
  1. Glass-Steagall Act

    An act the U.S. Congress passed in 1933 as the Banking Act, which prohibited commercial banks from participating in the investment ...
  2. Quantitative Trading

    Trading strategies based on quantitative analysis which rely on mathematical computations and number crunching to identify ...
  3. Bond Ladder

    A portfolio of fixed-income securities in which each security has a significantly different maturity date. The purpose of ...
  4. Duration

    A measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. ...
  5. Dove

    An economic policy advisor who promotes monetary policies that involve the maintenance of low interest rates, believing that ...
  6. Cyclical Stock

    An equity security whose price is affected by ups and downs in the overall economy. Cyclical stocks typically relate to companies ...
Trading Center