Build your own KPI to draw meaningful Insight

In this post, I aim to present a simple table with data from multiple years in an insightful format. Our data table has prices for Shell Eggs and Butter, where in goal is to gauge the effects of inflation. Inflation was at its peak in 2022, which is why data is focused on that time frame. Also, I will share an unconventional calculation at the end, which I would like to call Inflation metrics, as it helps to accentuate the price rise effectively. Let’s dive right in please see the data table below. 





Step 1: Use conditional formatting to convert the table into a heat map, price changes can be viewed more conveniently this way. For every year we can easily see the month with the highest price. 




Step 2: Our goal is to measure inflation so there needs to be a YOY comparison also we will calculate change vs 2YA. This way we can quantify the change and using a heat map we can see its severity. Here we can see a sharp increase in prices in May and June of 2022 where the inflation was at its peak. Even the stock markets were tanking as the Feds in the USA and RBI in India increased the Repo Rate. 




Step 3: Let's add the Inflation Metric as well. For that the calculation is simple, we will subtract the change vs YA for 2022 from the change vs YA for 2021. 



How to Interpret This
1. As highlighted in black, if the % of the Inflation metric is higher than the % for Change vs YA then it means there was a price decline from period 1 to 2 and an incline from 2 to 3. Especially in our case, there was a steep increase. !!!News Flash Inflation is high!!!
2. As highlighted in pink, if the % of the Inflation metric is negative or less than the % of Change vs YA then it means there is no need to worry about inflation and the price rises are in check as change from period 1 to 2 saw an increase whereas transition from 2 to 3 balanced the prices.

We have transformed the table and now it's much easier to pull out meaningful headlines.

Write your own analysis for the final table in the comments. Thank you and have a great day!

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