CFR /  Title 5  /  Part 591  /  Sec. 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 = $1.233DC Area Average Price for Item A = $1.164

Computation:$1.233/$1.164 = 1.05927831.0592783 x 100 = 105.92783.

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