Hello Sir.. Just wanna ask a small question about the inflation %. The cost plan is prepped for current rates. Then how should the inflation be added to the upcoming 5 years for which the cost plan is prepped? I read the relevant part in the NRM for this. But didn't quite understand it. How to use the indices to get an inflation percentage for the future.. Thanks in advance. 🙏🙏🙏
Hi there, Trying to forecast inflation 5 years into the future is almost impossible. All you can do is look at the current trends and inflation rates and make an assumption. Most people just add a percentage to cover the period from the preparation of the cost plan to the time the tender is received.
Hello Sir.. Just wanna ask a small question about the inflation %. The cost plan is prepped for current rates. Then how should the inflation be added to the upcoming 5 years for which the cost plan is prepped? I read the relevant part in the NRM for this. But didn't quite understand it. How to use the indices to get an inflation percentage for the future.. Thanks in advance. 🙏🙏🙏
Hi there, Trying to forecast inflation 5 years into the future is almost impossible. All you can do is look at the current trends and inflation rates and make an assumption. Most people just add a percentage to cover the period from the preparation of the cost plan to the time the tender is received.