NASA New Start Index Inflation Calculator

This is an inflation calculator for adjusting costs from one year to another using the NASA New Start Inflation Index. This inflation calculator is based on the inflation rate during the US Government Fiscal Year, which begins on October 1 and ends on September 30. This calculator computes inflation from 1959 to 2020.

Code BC maintains this index. In the past, it has been derived using a weighted average of commercially available inflation indices that represent the "market basket" of goods and services that NASA purchases. As such, it is meant to reflect price changes for the composite group of contractors, vendors and suppliers with whom NASA deals.

As a result of recent discussions with OMB, we have decided to modify the way the out-years portion of the index is developed. Instead of commercially available projections of future inflation, we will begin using OMB projections of future inflation. We are not changing the way we calculate the past-years portion of the index. It will continue to be based on actual inflation data we obtain from commercial sources. But this approach will make the out-years portion of the index consistent with OMB inflation projections. In recent years the OMB projections and the commercial projections have been relatively close. Code BC will monitor this and if a significant spread develops, we will re-consider this approach. I intend to issue the next update to the index about mid CY 2004.

Two other points of guidance relative to inflation: (1) For situations where a project has existing contracts, the use of those contractors' DCAS forward pricing rates should probably be preferred over the general index being discussed here. (2) We recommend that for long-term trade studies (more than 5 years out) that are comparing options and are not being used directly for a budgetary input, there is no need to inflate to future year prices. Staying in constant dollars generally makes the comparisons more understandable in terms of today's yardstick of prices.

Note. These models are provided as educational examples of technology developed and used by cost engineers. Use at your own risk. These tools are written in JavaScript and require a browser with JavaScript capability. If you have trouble viewing or using these tools, please consult the frequently asked questions.

Source: NASA New Start Inflation Index.

See also:

• Consumer Price Index
• Employment Cost Index
• GDP Deflator
• Import Price Index
• NASA New Start Index
• Producer Price Index

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