The Inflation and Escalation Best Practices for Cost Analysis Memo
clarifies terminology and introduces best practices for the uses of price indexes in cost analysis for the Department of Defense (DoD). It distinguishes between two major types of price indexes:
The Inflation and Escalation Best Practices for Cost Analysis - Analyst Handbook provides a comprehensive treatment on the topic of inflation, with a focus of common applications, including inflation adjustment, programming and budgeting, budget analysis, and cost estimation.
The Director, Cost Assessment and Program Evaluation (DCAPE) authorized the publication of this Handbook to ensure the development of realistic cost estimates and the proper presentation of those cost estimates for decision making.