If the index was launched during 2012. But the closing price available from 2008 year (First value date / base year). Is it possible / correct to consider this period (ie. 2008) in our study ?
INDEX: Tracking changes through time by comparing subsequent changes to a reference point called base year value. See Mathworldwolfram for various indices.
RELATE TO PERIOD PRIOR TO THE BASE YEAR: If the base year is 2012, it means that the the price in 2012 is P0 and the quantity in 2012 is Q0. To read the index for 2008 means that you are moving your Pi and Qi in a backward direction instead of going 4 years forward to 2016. The base year value is set as 100. For example, CPI Index for India uses 2005 as the based year. See Link. Note that, the chart allows you to calculate for period prior to and after the based year. in this case, if 2012 is the base year, you can use the base year as 100 and track yourself backward: 2011, 2010, 2009, and 2008 by using the prices for these years compared to that of 2012 base year.
WHICH FORMULA TO USE: Verify which index method was used for you 2012 base year. See mathworld link below. Use the correct formula to track back to 2008.
REFERENCES: For various index methods, see mathworlwolfram.
http://mathworld.wolfram.com/IndexNumber.html
http://www.tradingeconomics.com/india/gdp-deflator-base-year-varies-by-country-wb-data.html
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