Base Year

The first of a series of years in an economic or financial index. A base year is normally set to an arbitrary level of 100. Any year can be chosen as a base year, but typically recent years are chosen. New, more up-to-date base years are periodically introduced to keep data current in a particular index.

A base year is the year used for comparison for the level of a particular economic index. The arbitrary level of 100 is selected so that percentage changes (either rising or falling) can be easily depicted. For example, to find that rate of inflation (or any other economic index) between 2005 and 2010, one would make calculations using 2005 as the base year, or the first year in the time set.


Investment dictionary. . 2012.

Look at other dictionaries:

  • base year — USA The benchmark used to determine a tenant s proportionate share of taxes and operating expenses for premises located in a multi tenant building. Depending on the terms of the lease, each lease year (other than the first lease year) the tenant… …   Law dictionary

  • base year — base date The first of a series of years in an index. The value of the index in that year is often denoted by the number 100, enabling percentage rises (or falls) to be seen at a glance. For example, if a price index indicates that the current… …   Big dictionary of business and management

  • Base Year —   The first year of the period of analysis. The base year does not have to be the current year …   Energy terms

  • base year — year of origin in relation to various forms of calculated data …   English contemporary dictionary

  • base year — / beɪs jɪə/ noun the first year of an index, against which changes occurring in later years are measured. ⇒ database …   Marketing dictionary in english

  • base year — / beɪs jɪə/ noun the first year of an index, against which changes occurring in later years are measured …   Dictionary of banking and finance

  • base year — Econ the year from which an index is calculated …   The ultimate business dictionary

  • Base-Year Analysis — 1. The analysis of economic trends in relation to a specific base year. Base year analysis expresses economic measures in base year prices to eliminate the effects of inflation. 2. The analysis of a company s financial statements by comparing… …   Investment dictionary

  • Base Year/Base Date —    The year chosen to set an index at 100. Any year can be chosen as a base year, but it is generally desirable to use a fairly recent year; widely used in the compilation of macro economic data …   Financial and business terms

  • Common-base-year analysis — The representing of accounting information over multiple years as percentages of amounts in an initial year. The New York Times Financial Glossary …   Financial and business terms

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.