Tuesday, December 11, 2007

Rent Adjustment by CPI


SAP Real Estate module features a function that adjust rent by Consumer Price Index. Based on a corresponding index, the new rental fee is adjusted with reference to an identified rent-index ratio.

For example, based on the attached index, if the rent on April 2000 is $1,000, the adjusted rent on April 2007 would be about $1,207. That is, if the index rate 178.7 corresponds to rent of $1,000, then index rate 215.8 should correspond to rental rate of $1,207.

The Bureau of Labor Statistics updates CPI data here. As per this website, the November 2007 CPI data are scheduled to be released on December 14, 2007.

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