Base shifting
Shifting of base period or reference period of the index is known as base shifting.
This can be done using the following relation as,
Example
The following are the index numbers of a commodity taking 1991 as the base.
Find the index numbers by changing the base to 1994.
Years  1991  1992  1993  1994  1995 
Index Numbers  100  120  150  180  225 
Solution
Splicing
The process of combining two or more index numbers covering different bases into a single series is called splicing.
Suppose we have two series A and B, and if series A is spliced with B, then
If series B is spliced with A, then
Example
The following are two series A and B of the index numbers of a commodity taking 1991 and 1994 as the base years.
Years  Index Series A  Index Series B 
1991  100   
1992  90   
1993  125   
1994  150  100 
1995    120 
1996    150 
1997    200 
1998    225 

Splice the index series of A to B

Splice the index series of B to A
Solution
 Index series A spliced with index series B
 Index series B spliced with index series A
Deflating
It is a technique used to make allowances for the effect of changing price values. It is used to measure the purchasing power of money.
It can also be found using the relation
Example
The table below shows the income of a company and its price index taking the year 1991 as the base.
Calculate the deflated value for every year taking 1991 as the base.
Years  1991  1992  1993  1994  1995  1996 
Income (in crores)  80  108  125  147  216  230 
Price Index  100  120  125  140  180  200 
Solution