BY ORDER OF THE
SECRETARY OF THE AIR FORCE
AIR FORCE MANUAL 65-502
30 OCTOBER 2018
Financial Management
INFLATION
COMPLIANCE WITH THIS PUBLICATION IS MANDATORY
ACCESSIBILITY: Publications and forms are available for downloading or ordering on the
e-Publishing website at www.e-Publishing.af.mil.
RELEASABILITY: There are no releasability restrictions on this publication.
OPR: SAF/FMCE
Supersedes: AFI 65-502, 13 May 2015
Certified by: SAF/FMC
(Ms. Pamela C. Schwenke)
Pages: 29
This manual implements AFPD 65-5, Cost and Economics, by setting guidelines for inflation
adjustments in the Air Force Planning, Programming, Budgeting and Execution System (PPBES)
and other Air Force analysis/reporting. It applies to individuals/organizations at all levels who
apply inflation as described in this manual, including Air Force Reserve and Air National Guard
(ANG) units, except where noted otherwise. This manual dictates how to apply the inflation and
escalation rates provided by the Office of the Under Secretary of Defense (Comptroller)
(OUSD(C)) and describes how the Deputy Assistant Secretary of the Air Force for Cost and
Economics (SAF/FMC) generates inflation indices and distributes them to the field for converting
both constant and then-year dollars. Ensure all records created as a result of processes prescribed
in this publication are maintained in accordance with Air Force Manual 33-363, Management of
Records, and disposed of in accordance with the Air Force Records Disposition Schedule located
in the Air Force Records Information Management System. Refer recommended changes and
questions about this publication to the Economics and Business Management Directorate
(SAF/FMCE) using AF Form 847, Recommendation for Change of Publication; route AF Form
847s from the field through the appropriate functional chain of command. The authorities to waive
wing/unit level requirements in this publication are identified with a Tier (“T-0, T-1, T-2, T-3”)
number following the compliance statement. See AFI 33-360, Publications and Forms
Management, for a description of the authorities associated with the Tier numbers. This publication
may be supplemented at any level, but all direct Supplements must be routed to the Office of
Primary Responsibility for this publication for coordination prior to certification and approval. The
