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The Quality of CPI Data Continues to Deteriorate - Apollo Academywww.apolloacademy.com/the-quality-of-the-cpi-data-continues-to-deteriorate/
548 sats \ 5 comments \ @Scoresby 4 Sep econ
Given the fact that Amazon can deliver a product to my door in less than 24 hours, and that we can confidently model the paths of storms over the oceans, why can't we do better with collecting real data about prices?
To calculate CPI inflation, BLS teams collect approximately 90,000 price quotes every month covering 200 different item categories, and there are several hundred field collectors active across 75 urban areas.
When data is not available, BLS staff typically develop estimates for approximately 10% of the cells in the CPI calculation. However, the share of data in the CPI that is estimated has increased significantly in recent months and is now above 30%, see chart below.
In other words, a rising share of prices going into the CPI at the moment are guesses based on other data collections in the CPI.
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46 sats \ 0 replies \ @Undisciplined 4 Sep
In recent months, they've likely lost a lot of the staff who would gather data. Also, there's an ongoing trend of declining survey response rates, so researchers have to either increase sample sizes or do more imputation.
They're probably relying on outdated methods, as well, and could take better advantage of how many prices are listed online.
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107 sats \ 0 replies \ @SimpleStacker 4 Sep
Yeesh, 35% is huge. Trump is the only explanation here haha.
Given the fact that Amazon can deliver a product to my door in less than 24 hours, and that we can confidently model the paths of storms over the oceans, why can't we do better with collecting real data about prices?
We can definitely do better. I don't know what methods they use currently but this looks more like a choice than due to any kind of inability.
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102 sats \ 0 replies \ @Daedalus 5 Sep
CPI has and continues to be a tool to suppress wages and subjugate the masses. Price of scarce assets (houses, gold), money supply, and the stock market have always been truer indications of inflation.
They're not making mistakes, they're lying.
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0 sats \ 0 replies \ @Solomonsatoshi 5 Sep
For decades importation of low cost manufactured goods from China held down the CPI.
Then D.J.Trump came to power and introduced punitive tariffs.
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0 sats \ 0 replies \ @nkmg1c_ventures 4 Sep
At least they're still publishing the chart you posted. :| It's a kind of honesty I suppose
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