Which of the following statements best explains the 'base effect' in the context of inflation measurement?

Options:

• A: It is the sudden rise in inflation due to a change in the base year of the index.
• B: It is the distortion caused by changing the weights of items in the basket of goods.
• C: It refers to the impact of the price level of the corresponding period of the previous year on the current inflation rate.
• D: It refers to the minimum level of inflation required to keep the economy functioning at full employment.

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