On Dec 15, 2008, at 10:31 AM, Charles Turner wrote:
> On Mon, 15 Dec 2008 06:22:19 -0800 (PST), Wojtek Sokolowski wrote:
>> [WS:] Why not price indexes for personal consumption expenditures?
> http://www.bea.gov/national/nipaweb/TableView.asp?SelectedTable=64&Freq=Qtr&FirstYear=2006&LastYear=2
>
> Thanks. So if the "personal consumption expenditures" index was 23.237
> in 1967 and 117.659 in 2007, it looks like there's been a 94.422
> percent increase? So $100 in 1967 is $194.422 in 2007 dollars?
An increase from 23.2 to 117.7 is an increase of about 400% (117.7 divided by 23.2 equals about 5). So $100 in 1967 is $500 in 2007 dollars. This is equivalent to an average annual rate of increase over 40 years of a little more than 4%. (the rate of increase over time can be calculated mentally by estimating how many years it takes for each doubling of the original base and dividing 72 by that number).
Shane Mage
> This cosmos did none of gods or men make, but it
> always was and is and shall be: an everlasting fire,
> kindling in measures and going out in measures."
>
> Herakleitos of Ephesos