Economics

I just don't understand why is the index expressed as 100 for the base year

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  1. It is an arbitary convention that is used. Currently, a base period of 1982-1984 is being used. See
    http://www.bls.gov/news.release/cpi.t03.htm

    Using a base period CPI value of 100 makes is easier to visualize % changes since then.

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