Code of Federal Regulations Title 5. Administrative Personnel § 5.591.209 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

1.0592783 x 100 = 105.92783.

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