Changing Crude oil data in nominal terms to real terms?

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I have a data set of monthly crude oil data in nominal prices and need to convert it into real prices with the base rate of 25. Does anybody know the excel calculation I would have to put in to get these figures. Link for the nominal data here: http://bit.ly/109akmN

Thanks

✅ Answers

  • Answerer 1

    What you need the the CPI, the excel calculation is easy. P(25 dollars) = P(nominal) * CPI(25)/CPI

    The term CPI(25)/CPI will = 1 for the year 25 less than 1 for later years and more than 1 for earlier years since the CPI almost always increases with time

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