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Archive for category: Analysis

Inflation Adjustments Available for Data Analysts

Answer these questions:

Do you…

  • present nominal dollar values over time?
  • want to add inflation-adjusted values in your analysis?

We have some exciting news! Query the Enterprise Data Warehouse (EDW) to include inflation adjustment values in your analysis project.

Get It in the EDW

If you already have access to the EDW, find the CPI data stored in the sec.dimConsumerPriceIndex view in the FinancialSumMart Database.

See Examples:

See inflation adjustment examples in our research expenditure dashboards in UW Profiles:

  1. Overview of Research Total Expenditures
  2. Summary of Research Total Expenditures by Funding Entities

How It Works

Every month the EDW Team pulls consumer price index (CPI) data from the Bureau of Labor Statistics giving you access to this data through EDW queries. We use CPI to adjust nominal expense data for inflation.

The Math Behind It All

For an annual (fiscal year) analysis:

  1. Annual Average: Adjust a nominal value for inflation by first taking the average of each of the CPI values for each month in the Fiscal Year.
  2. Inflation Adjustment: Divide the CPI average for the period the transaction occurred (e.g. 2010) by the CPI value for the current time (e.g. 2018).

EDW Access

If you don’t already have access to the EDW, then you can request access here. If you have any questions please don’t hesitate to write us at help@uw.edu.

Inflation Adjustments Available in UW Profiles

In UW Profiles, under the Research category, run analysis on both inflation and non-inflation adjusted expenditure data.

UW Profiles Examples:

Using UW Profiles, you can click on the “Research Dashboards” tab (on the right) and see the dashboards.

  1. Overview of Research Total Expenditures
  2. Summary of Research Total Expenditures by Funding Entities

What does this mean?

Inflation means the price for goods and services are going up. “Inflation adjusted” is sometimes referred to as “real expenses.” “Non-inflation adjusted” is sometimes referred to as “nominal expenses.” So when you see “inflation adjusted” or “non-inflation adjusted” you know that either inflation has or has not been applied to the data.

The way inflation is applied to the data is by including Consumer Price Index (CPI) data. The CPI measures the change in prices of a predetermined “market basket” of goods and services over time.

Why is this important?

By looking at data over time that includes inflation, you are able to compare with accuracy. By not including inflation adjustments, the data skews making trends appear when they are not real.

Where does this data come from?

The expenditure data is sourced from multiple areas on campus which end up in the EDWPresentation database. The CPI data is from the Bureau of Labor Statistics.

Example – How CPI is calculated

For an annual (fiscal year) analysis:

  1. Annual Average: Adjust a nominal value for inflation by first taking the average of each of the CPI values for each month in the Fiscal Year.
  2. Inflation Adjustment: Divide the CPI average for the period the transaction occurred (e.g. 2010) by the CPI value for the current time (e.g. 2018).