Regional Price Parity Index (RPP)1
The RPP determines the inputted state’s purchasing power by weighing its average price level of goods and services against other states' averages.
Consumer Price Index for the Elderly (CPI-E)2
The CPI-E takes into account spending behaviors in households with a member age 62 or above. It represents an average value over a 31-year period from 1983 to 2011. 2011 was the last year data was collected.
Personal Consumption Expenditures price index (PCEPI)3
The PCE index tracks changes in price levels and consumer behaviors at the state and national level and is calculated annually.
Weighted Inflation Factor
The weighted inflation factor is calculated first by adjusting each subcategory inflation value based on the weight of the estimated subcategory expense value to the total category estimated expense value. The weighted inflation values are then averaged together to make a category weighted inflation factor. The subcategory inflation values are calculated by taking a rolling 17-year average of the percentage change in prices as published by the Bureau of Labor Statistics Consumer Price Index for All Urban Consumers report4.
For cases where the average inflation rate over the 17-year rolling period results in a value significantly higher than other categories, the period is extended to a 50-year rolling period. In other cases where a negative inflation rate is returned, a general inflation rate of 2.18% is used. The general inflation rate is calculated by averaging yearly inflation rates, as published by BLS4 over a rolling 19-year period.
