FLORIDA DEPARTMENT OF TRANSPORTATION
TRANSPORTATION COSTS REPORTS
Inflation Factors
_________________________________________________________________________________________________________________________________________________
This “Transportation Costs” report is one of a series of reports issued by the Office of Policy
Planning. It provides information on inflation factors and other indices that may be used to
adjust project costs.
Please note that the methodology for Inflationary adjustments relating to specific
transportation projects should be addressed with the district office where the project will be
located. For general use or non-specific areas, the general guidelines provided herein may
be used for inflationary adjustments.
Construction Cost Inflation Factors
The table below includes the inflation factors and present day cost (PDC) multipliers that are
applied to the Department’s Work Program for highway construction costs expressed in 2010
dollars.
Fiscal Year Inflation Factor PDC Multiplier
2010 Base 1.000
2011 3.3% 1.033
2012 3.3% 1.067
2013 3.3% 1.102
2014 3.3% 1.139
2015 3.3% 1.176
2016 3.3% 1.215
2017 3.3% 1.255
2018 3.3% 1.297
2019 3.3% 1.339
2020 3.3% 1.384
Source: Office of Financial Development,
(Fiscal Year 2010 is July 1, 2009 to June 30, 2010)
Other Transportation Cost Inflation Factors
Other indices may be used to adjust project costs for other transportation modes or non
construction costs. Examples are as follows:
_____________________________________________________________________________________________________________________
This report is one in a series on transportation costs. The latest version of this and other reports are
available at www.dot.state.fl.us/planning/policy/costs
August 26, 2009 Page 1 of 2
The Consumer Price Index (CPI, also retail price index) is a weighted average of prices of a
specified set of products and services purchased by wage earners in urban areas.
Restated, it is a price index which tracks the prices of a specified set of consumer products
and services, providing a measure of inflation. The CPI is a fixed quantity price index and a
reasonable cost-of-living index.
The Producer Price Index for Highway and Street Construction (PPI) is reported monthly by
the U.S. Department of Labor’s Bureau of Labor Statistics. It is derived from current pricing
information of material and services used directly or indirectly in highway construction. PPI
does not forecast future inflation rates.
The Employment Cost Index (ECI) is based on the National Compensation Survey. It
measures quarterly changes in compensation costs, which include wages, salaries, and other
employer costs for civilian workers (nonfarm private industry and state and local government).
Advisory Inflation Factors For Previous Years
Another “Transportation Costs” report is available covering highway construction cost inflation for
previous years. “Advisory Inflation Factors For Previous Years (1987-2010) provides Present Day
Cost (PDC) multipliers that enable project cost estimates from previous years to be updated to FY
2010. Please go to http://www.dot.state.fl.us/planning/policy/costs/RetroCostInflation.pdf for the
table and text providing this information.
This report is one in a series on transportation costs. The latest version of this and other reports are
available at http://www.dot.state.fl.us/planning/policy/costs/default.asp
August 26, 2009 Page 2 of 2
