perusindeksi

Perusindeksi is a Finnish term that translates to "base index" or "basic index." It refers to a starting point or reference value used in the calculation of various economic or statistical indices. When a new index is created, a specific point in time is chosen as the base period, and its value is set to 100. All subsequent values of the index are then expressed as a percentage of this base value.

This base index allows for easy comparison of changes over time. For example, if the consumer price index (CPI) has a base year of 2015 with a perusindeksi of 100, and in 2023 the index is 120, it means that prices have increased by 20% since 2015. Similarly, in wage indexation, a perusindeksi is used to adjust wages according to inflation, ensuring their purchasing power is maintained. The selection of the base period is crucial as it directly influences the interpretation of index movements.