What does the Global Inflation Factor adjust?

The Global Inflation Factor is used to adjust prior year values in shared formulas to reflect current economic conditions, specifically inflation rates. By applying the Global Inflation Factor, organizations can effectively update historical financial data and ensure that it remains relevant when used in forecasts and budgeting processes. This adjustment allows for better analysis and planning, as it accounts for the changes that inflation may cause in expenses or revenues over time. It ensures that prior year figures are aligned with the present, facilitating more accurate comparisons and trend analysis. This makes it easier for finance teams to make informed decisions based on historical performance adjusted for today's economic realities.