A rapid increase in the rate of inflation is sometimes attributed to thebase effect. What isbase effect?

• A. It is the impact of drastic deficiency in supply due to failure of crops
• B. It is the impact of the surge in demand due to rapid economic growth
• C. It is the impact of the price levels of previous year on the calculation of inflation rate
• D. None of the statements (a),(b),(c) 'given above is correct in this context