(a). Price Relative. A price relative will be calculated for each item in each county by dividing the year ago price for an item by the current price.
where: PR = Price Relative,
P = Price,
i = item,
j = county,
c = current price,
o = last year's price.
(b). Weighted Price Relative. A weighted price relative for each item in each county will be calculated by multiplying the Price Relative of each item in each county by the weight of each item.
where: WPR = Weighted Price Relative,
PR = Price Relative,
w = weight,
i = item,
j = county.
(c). Inflation Rates. The following methods will be used to calculated inflation rates. - (I). Statewide inflation rates.
- (A). The statewide all items inflation rate will be calculated by summing the weighted price relatives for each county, subtracting the sum of the weights (100), and dividing the resulting difference by the sum of all weights (100). The resulting difference is the county specific inflation rate. The county specific inflation rates will be multiplied by the county's population weight and summed for all counties to calculate the statewide all items inflation rate.
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where: S = Statewide inflation rate,
cnty = county inflation rate,
WPR = Price Relative,
pop = population weight, item,
n = = number of priced items,
j = county.
- (B). Statewide inflation rates for each category will be calculated by summing the weighted price relatives for each category for each county. The sum of the weights for the category will be subtracted from the sum of the weighted price relatives, and the resulting difference will be divided by the sum of the weights for the category. The resulting category specific county inflation rates will be multiplied by the county's population weight and summed for all counties.
where: S = Statewide inflation rate,
cnty =county inflation rate,
WPR =Price Relative,
pop =population weight
i item,
y =number of items in category,
r = category,
j = county.
- (II). Regional inflation rates.
- (A). The regional all items inflation rates will be calculated by summing the weighted price relatives for each county in the region, subtracting the sum of the weights (100), and dividing the resulting difference by the sum of all weights (100). The resulting difference is the county specific inflation rate. The county specific inflation rates will be multiplied by the county's population weight and summed for all counties in the region to calculate the regional all items inflation rate.
[* Internal error: Place aborted. | In-line.WPG *]
where: reg = Regional inflation rate,
cnty = county inflation rate,
WPR = Price Relative,
pop = population weight,
i = item,
j = county,
k = number of counties in region,
n = number of priced items.
- (B). Regional inflation rates for each category will be calculated by summing the weighted price relatives for each category for each county. The sum of the weights for the category will be subtracted from the sum of the weighted price relatives, and the resulting difference will be divided by the sum of the weights for the category. The resulting category specific county inflation rates will be multiplied by the county's population weight and summed for all counties in the region.
[* Internal error: Place aborted. | In-line.WPG *]
where: S = Statewide inflation rate,
cnty = county inflation rate,
WPR = Price Relative,
pop = population weight,
i = item,
j = county,
k = number of counties in region,
r = category,
y = number of items in category.