FNPF-help please

angi13

Hello,

Please i need help to uderstand the following question:
Jan
Actual price was £6.80
Seasonal variation was +£0.40

Feb
Actual price was £6.40
Seasonal variation was -£0.10

March
Actual price was £7.00
Seasonal variation was +£0.40

Calculate the monthly movement in the price trend?

Thank you
Angi

uknitty

Hi there


To find the underlying trend you need to remove the effect of seasonal variation

Jan 6.80 - 0.40 = 6.40

Feb 6.40 + 0.10 = 6.50

Mar 7.00 - 0.40 = 6.60

The monthly movement in the price trend is + 0.10 a month

angi13

Hi,

Thank you very much for you advise.
Angi