The equation is a standard one in use at the Board and elsewhere. It relates core consumer price inflation - using, say, the index for core personal consumption expenditures (PCE) or the core consumer price index (CPI) - to resource utilization, lagged inflation, changes in relative prices of food and energy, and changes in relative import prices.
Investigations revealed that more than three billion dollars worth of costs were wrongly classified as capital expenses over a five quarter period. This boosted the reported profits, which were in fact fictitious. 33. The case of Satyam Computer Services here in India was similar.