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"Historic Inflation" in PRC Historic Data

 

(@wolfv)
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Joined: 7 months ago
Posts: 23
Topic starter  

What is the average "Historic Inflation" in PRC > FINANCIAL ASSETS > Historic Data (used in Historical Analysis)?
Copy & paste the "Historic Inflation" column into another spread sheet did not work.


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(@pizzaman)
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Joined: 2 years ago
Posts: 112
 

I don't know what is in PRC but: For August 2022 US Inflation Rate is at 8.26%, compared to 8.52% last month and 5.25% last year. This is higher than the long term average of 3.26%.

https://ycharts.com/indicators/us_inflation_rate


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(@wolfv)
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Joined: 7 months ago
Posts: 23
Topic starter  

I would also like to get the the following historic averages used by PRC's Historical Analysis:

  • S&P
  • 10-Year T-Bond
  • Historic inflation

Page 54 of the PRC manual links to its source of historical data:
https://pages.stern.nyu.edu/~adamodar/New_Home_Page/datafile/histretSP.html
But PRC's Historic Sequence Data Table doesn't match the numbers from that link.

This post was modified 2 months ago 2 times by Wolfram Volpi

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(@golich428)
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Joined: 2 years ago
Posts: 40
 

@wolfv Below is the reference in the manual. If I am reading the manual correctly the stock market and inflation data is from Robert J. Shiller, the 3 mo T-bill and 10-year T-Bond is from Stern. I have used Shiller data in the past and had to calculate the annual data because Shiller's data is monthly. I have compared my results to Pralana and they appear to be the same. I have found that different people use a different calculation to arrive at annual returns but in the end, it is all based on the stock market prices and dividends, so I don't think the impact on returns will be significant over a long enough time periods.

Hopefully, Stuart will chime in as it is a little confusing.

Five of these are hard-coded and cannot be changed by the user, and these correspond to the following: Standard & Poor’s total stock market returns since 1928 (Robert J. Shiller, Professor of Economics, Yale University), 3-Month T-Bill total returns since 1928, 10-Year T-Bond total returns since 1928 ( http://pages.stern.nyu.edu/~adamodar/New_Home_Page/datafile/histretSP.html) a cash sequence with 0% returns, and a Historic Inflation sequence corresponding to historic inflation back to 1928 (Robert J. Shiller, Yale University).


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(@hines202)
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Joined: 2 years ago
Posts: 184
 

@golich428 covered it well, so I'll just add a caveat for you @wolfv - be very careful about copying/pasting anything to/from Pralana. Things can go south in a hurry. By necessity, it's a pretty complex piece of Excel wizardry. There are caveats to that in the manual and in the opening pages.


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