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• O & S
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• Inflation and Escalation

Inflation and Escalation

CAPE Inflation and Escalation Handbook

The Inflation and Escalation Best Practices for Cost Analysis - Analyst Handbook focuses on clarifying terminology and introducing 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:

1. Inflation: an economy-wide increase in the average price level
2. Escalation: reflects changes in the prices of specific goods and services

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.

Best Practices Webinar

In this webinar, Erica Walters of OSD CAPE outlines the inflation and escalation best practices for cost analysis.