How the BLS Builds the CPI The CPI is not a rough estimate but a carefully built, survey-driven system refined over more than a century. To construct it, the BLS gathers price data on hundreds of everyday goods and services, known as the “market basket.” This effort spans roughly 8,000 housing units and 23,000 retailers, service providers, and online outlets across 75 urban areas nationwide, creating a detailed snapshot of how prices move in the real world. Approximately two-thirds of that price collection is done by personal visits from CPI data collectors to brick-and-mortar stores. The remaining data are collected by telephone or on outlet websites and apps. This is painstaking, … [Read more...]
Can We Trust Government Inflation Numbers?
Independent Inflation Tracking Numbers Updated February 19, 2016 For some reason people don't seem to trust the government. I can't understand why. Surely the government only has our best interests at heart and wants to take care of us like good parents, and they are just protecting us from ourselves. And of course all politicians are honest, selfless, hard-working civil servants. Right? Well, Okay maybe they don't always have our best interests at heart. And maybe it would benefit the budget if they didn't have to pay so much for cost of living increases but surely they aren't fudging the Consumer Price Index are they? I frequently get emails, and occasionally phone calls, asking … [Read more...]