Cost Guide. Volume 5. How to Construct and Use Economic-Escalation Indices

摘要

Information on inflation and escalation is covered. A lucid discussion of the causes of inflation, information on frequently used indices, and sources of information is presented. Topics which are oriented toward providing the information that a cost analyst would need to develop an index discussed are: the cost/price index numbers, construction of a project index, forecasting changes in an index, and manipulation and use of indexes. The Chemical Engineering Chemical Plant Index is used as an illustration on how to develope a specific index. Guidance that the Defense Contract Audit Agency issued to its auditors explaining how they should check inflation is included. The appendices provide a listing of some of the time series which are used by the Independent Cost Estimating Staff in forecasting inflation and developing composite indices. (ERA citation 07:047045)