Inflation can be an abstract concept for clients, unless you develop vignettes to make it more concrete.

Here's an idea: Ask clients to identify the average price they are paying per gallon of gasoline today and then guess at the comparable price they were paying five years ago.

Then, tell them the real answers for selected cities or states, based on the U.S. Energy Information Agency's online data base here: www.eia.gov/oil_gas/petroleum/data_publications/wrgp/mogas_history.html

For example, the most recent price of Regular Conventional Retail Gas in Florida was $3.505 as of June 27. (Prices are updated weekly with about a two-week lag). In the same week of 2006, the Florida price per gallon was $2.815.) You can calculate that inflation in Florida gas prices was 24.5% over five years or 4.48% per year.  The Excel formula for calculating the annual inflation rate is: =RATE(5,0,-2.815,3.505)

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