C.F.R. » Title 5 » CHAPTER I—OFFICE OF PERSONNEL MANAGEMENT › SUBCHAPTER B—CIVIL SERVICE REGULATIONS › PART 591—ALLOWANCES AND DIFFERENTIALS › Subpart B—Cost-of-Living Allowance and Post Differential—Nonforeign Areas

5 C.F.R. § 591.209

What is a price index?

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(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 × 100 = 105.92783.

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