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so were going to have a look at index numbers in this video now index numbers are basically percentages but without a percentage sign and they compare the price of an item with a base year price with almost an original price and each year whats the percentage change increase or decrease okay so lets look at the official definition so to recap index numbers are about comparing prices so this is sort of real-world examples theyre comparing the price of an item with a base year price so you choose a base year a starting point and each time youre comparing it to that original amount you look at percentage change and the base year has the base percentage of a hundred percent it starts off as a hundred percent but because an index number is a percentage without a percentage sign then the index number would just be a hundred instead of a hundred percent so the base year has index number one hundred and thats a look at a very simple example in which we use this okay so were looking at