The Increase in the Implicit Price Deflator (IPD) from July 2000 to July 2001 is 1.89 Percent

October 4, 2001

On September 1, we announced that, based on unpublished data from the Bureau of Economic Analysis (BEA) of the U.S. Department of Commerce, the increase in the implicit price deflator for personal consumption expenditures from July 2000 to July 2001 was 1.89 percent. However, the Department of Revenue does not consider this number official until it is confirmed by data published in the September 2001 issue of the Survey of Current Business. That publication has taken place.

Here is the math. Divide the July 2001 index (109.75) by the July 2000 index (107.71). Subtract 1 and multiply by 100. The result is 1.89 percent.

Note that if Initiative 747 passes in November, the maximum amount by which a taxing district's levy can increase, without a vote of the people, will be the lesser of one percent or the rate of inflation as measured by the increase in the IPD. Since one percent is less than 1.89 percent, one percent would be the limit.