Definition Converting values so a starting point equals 100, making changes over time easy to compare.
Example Sales of €120k against a base of €100k give an index of 120.
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Why it matters It makes it easy to compare growth between very different numbers.
Where it is used Economic reports, price comparisons and trend charts.
How to calculate it (Value this period ÷ value in the base period) × 100
Worked example Sales of €120k against a base of €100k give an index of 120.
