Why is the price year or currency year important in economic evaluations?

• A. It ensures costs are comparable over time by standardizing to a common year
• B. It ensures currency conversion
• C. It reduces inflation variability
• D. It aligns with clinical guidelines

Answer: (C)

Using a price year means expressing all costs in the prices of one fixed year. In economic evaluations that span multiple years, prices change because of inflation, so costs from different years aren’t directly comparable. By standardizing to a common year, you remove those year-to-year price changes, making the cost data comparable over time. This standardization directly reduces the influence of inflation on comparisons, which is why it’s the best way to ensure costs are evaluated on a like-for-like basis. Currency conversion deals with converting between currencies, and clinical guidelines aren’t the reason for choosing a price year.