Starting from a base (or reference) year, a price index Pt represents the price of the commodity bundle over time t. In base year zero, P0 is set to 100. If for example the base year is 1992, real values are expressed in constant 1992 dollars, based at 100 for 1992. Also imagine for example, that the price of the commodity bundle has increased in the first year by 1%, then Pt rises from P0 = 100 to P1 = 101.
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Now for the bad news: USPS also increased domestic stamp prices, the AP reported. As of Jan. 27, regular domestic letters weighing one ounce or less now cost 46 cents to mail, a one-cent increase. Each additional ounce costs another 20 cents. A domestic postcard stamp has risen to 33 cents.