What is a price index?
Primary source
Verbatim text below is from the Electronic Code of Federal Regulations (eCFR), a public-domain U.S. government work. Always verify the current version with the eCFR before relying on it for any legal matter.
Full Text
(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.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.