Cost Escalation Factor

The estimates for cost magnitudes are given in then year dollars. It is customary to scale cost data from one then year to another with a cost escalation factor. The cost escalation factor is based on the ever rising Consumer Price Index, CPI. CEF is calculated by taking a ratio of the CPI for "then year" and comparing it to the CPI for a base year. The Cost Analysis Module uses the calendar year 1970 as a base year (i.e. CEF for 1970 = 1.0).

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See Graphic

Note: The Cost Escalation Factor is based on published data through 202 2 .