Using the previously-described technique for converting indices from one base to another, if we wanted to calculate the price of oil on the basis of a constant value of US dollars for the year 2007, the calculation is as shown in Figure 9.9.

8708588 Example 9.9 Im Year 1980 1981 1982 1983 1904 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2000 2009 2010 2011 Oil price $317.42 $35.75 $31.83 $29.08 $28,75 $26.92 $14.44 $17.75 $14.87 $18.33 $23.19 $20.20 $19.25 $16.75 $15.66 $16.75 $20 46 $18.64 $11.91 $16.56 $27.39 $23.00 $22.81 $27.69 $37.66 $50.04 $58.30 $54.20 $91.48 $53.48 $71.21 $87.04 CPI 2000-100 47.86 52.8 56 04 57.64 60.33 62.47 63 65 65.98 68.67 71.99 75.00 79.09 81 48 83.89 86.08 68.49 91.09 $3.22 94.66 96.73 1000 102.83 Figure 9.9 Deflated oil prices with CPI 104 46 106 83 109.69 113.41 117.07 120 41 125.03 124.69 126 63 130.63 Oil price in constant 2007 S 594 14 $81.53 $68.39 $60.54 $57.38 561.89 527 32 $32.39 $26.07 $30.66 $36.00 $30.75 $28.45 $24.04 $21.91 $22.79 $27.05 $24.08 $15.15 $20.61 $32.18 $26.93 $26.29 531.21 541.34 $63.13 $59.95 $64.20 560.10 $51.69 567.71 $80.23 Formular CA(50531/04) -C35($D$31/035)