---
kind: "section"
citation: "5 C.F.R. § 591.226"
title: "5"
number: "591.226"
heading: "How does OPM apply the CPIs?"
url: "https://uscodex.org/cfr/5/591.226"
---

# §591.226. How does OPM apply the CPIs?

- (a) OPM uses a three-step process to adjust price indexes by relative annual or biennial changes in the CPIs. For steps 1 and 2, OPM computes the annual change by dividing the CPI from 1 year after the survey by the CPI from the time of the survey. OPM computes the biennial change by dividing the CPI from 2 years after the survey by the CPI from the time of the survey.
  - (1) **Step 1.** OPM computes the annual or biennial CPI change for the COLA area.
  - (2) **Step 2.** OPM computes the annual or biennial CPI change for the DC area.
  - (3) **Step 3.** OPM multiplies the COLA area price index from the last survey by the COLA area CPI change computed in step 1 divided by the DC area CPI change computed in step 2. The adjusted price index is rounded to the second decimal place.
- (b) **Example—**

## Notes

### Authority

Authority: 5 U.S.C. 5941; E.O. 10000, 3 CFR, 1943-1948 Comp., p. 792; and E.O. 12510, 3 CFR, 1985 Comp., p. 338.

### Source

Source: 67 FR 22340, May 3, 2002, unless otherwise noted.