<< Click to Display Table of Contents >> Post Adjustment > How are the data collected from the place-to-place survey used to calculate the post adjustment index?

The price survey generates average prices for each item in a common basket of goods and services. These average prices collected in the duty station are then compared to the average prices of the same items collected in New York. The price differences will provide an indication of the cost of living at the various duty stations as compared to New York, as it pertains to the prices of the basket items.. However, to determine the cost-of-living differential, these price differences must be averaged using weights derived from the staff expenditures surveys. In this way, the expenditures surveys determine the importance of the different expenditure categories.

 

Clearly both the price and expenditures surveys are indispensable in the process of determining a PAI that accurately reflects the cost of living at duty station. For instance, the price of an item or group of items can increase significantly in a duty station, but this would have no impact on the PAI, if professional staff members serving in the duty station do not complete the survey questionnaires, registering their expenditures on these items.