Mrunal a rapid increase in the rate of inflation is sometimes attributed to the "base effect". What is "base effect"?
Answers
Answered by
0
Answer:
The base effect is the distortion in a monthly inflation figure that results from abnormally high or low levels of inflation in the year-ago month. A base effect can make it difficult to accurately assess inflation levels over time. It diminishes over time if inflation levels are relatively constant.
Similar questions