PriceDeflate
X
Adjusting historical prices for inflation
Slide 2
Slide 3
Slide 4
Slide 5
Converting the prices and switching the base
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CC
Red
Car
Oct
2011
(12).JPG
Adjusting
historical
prices
for
inflation
...
with
an
emphasis
on
energy
prices
http://www.youtube.com/watch?v=c1_nDL8h4eU
More
about
this
streetcar:
Go
to:
http://http://www.bls.gov/ppi/
To
convert
nominal
price
values
to
real
(inflation-adjusted)
values
simply
divide
the
nominal
price
by
the
deflator
value
then
multiply
the
result
times
100.
For
example,
in
base
1982
values,
if
the
Dec
2011
deflator
is
equal
to
214.2
and
the
Dec
2011
price
of
coal
is
$26.50,
then
the
1982
inflation-adjusted
price
of
coal
equal
25.60/2.142
=
$11.95.
Make
this
calculation
for
every
price
in
the
series
(divide
one
column
by
the
other).
To
change
an
old
base
(1982)
to
a
new
base
(most
recent)
simply
divide
all
observations
by
the
new
base
value
for
example,
if
you
want
to
make
December
2011
the
new
base,
and
if
the
value
for
December
2011
is
equal
to
214.2,
then
divide
all
observations
by
214.2.
Converting
the
prices
and
switching
the
base