Base effect

id: base-effect-166-12356020
title: Base effect
text: The base effect relates to inflation in the corresponding period of the previous year. If the inflation rate was too low in the corresponding period of the previous year, even a smaller rise in the Price Index will arithmetically give a high rate of inflation now. On the other hand, if the price index had risen at a high rate in the corresponding period of the previous year and recorded high inflation rate, a similar absolute increase in the price index now will show a lower inflation rate now.
brand slug: wiki
category slug: encyclopedia
description: Concept in economic inflation
original url: https://en.wikipedia.org/wiki/Base_effect
date created: 2011-07-08T03:28:53Z
date modified: 2024-08-30T00:14:42Z
main entity: {"identifier":"Q1095519","url":"https://www.wikidata.org/entity/Q1095519"}
image:
fields total: 13
integrity: 15

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