Base period

Definition

Base period refers to a specific timeframe used as a reference point for comparison when analyzing economic data or calculating indices such as the Consumer Price Index (CPI) or Gross Domestic Product (GDP).

Related terms

Real GDP: The value of goods and services produced in an economy adjusted for inflation.

Nominal value: The face value or current price of something without adjusting for inflation.

Deflation: A sustained decrease in the general price level of goods and services, often associated with economic downturns.