Base Effect
Noun
US
/beɪs ɪˈfekt/
UK
/beɪs ɪˈfekt/
US
/beɪs ɪˈfekt/
UK
/beɪs ɪˈfekt/
The distortion in year-on-year comparisons caused by an unusually high or low base period.
Base Effect signals shifts in the broader economy and guides policy decisions.
Closely related to CPI, GDP.
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Base Effect - key concept in Economic Indicators.
Economic analysis; Inflation interpretation; Data reading
Applied in Economic Indicators contexts: Economic analysis; Inflation interpretation