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§591.209 — What is a price index?

(a)

The price index is the COLA area price divided by the DC area price and multiplied by 100.

(b)

Example:

COLA Area Average Price for Item A = $1.233

DC Area Average Price for Item A = $1.164

Computation:

$1.233/$1.164 = 1.0592783

0592783 × 100 = 105.92783.

(c)

In the case of the final index, OPM rounds the index to two decimal places.

Reason: