<< Click to Display Table of Contents >> Post Adjustment > How is the post adjustment index derived?

The post adjustment index (PAI) is established by means of periodic comparisons of cost-of-living data between the base city and other locations.  These data are collected through surveys called place-to-place surveys.  In between place-to-place surveys, the PAI is updated through time-to-time adjustments reflecting movements in local prices as well as changes in the local exchange rates relative to the US dollar.