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Over the years, the methodology used to calculate the CPI has undergone numerous revisions. According to the BLS, the changes removed biases that caused the CPI to overstate the inflation rate. The new methodology takes into account changes in the quality of goods and substitution. Substitution, the change in purchases by consumers in response to price changes, changes the relative weighting of the goods in the basket. critics view the methodological changes and the switch from a COGI to a COLI as a purposeful manipulation that allows the U.S. government to report a lower CPI. https://www.investopedia.com/articles/07/consumerpriceindex.asp
It's a government manipulated metric and they just once against changed it to show lower inflation. CPI used to reflect cost of goods index (COGI). First they manipulated the goods constituting the index. Then they changed it to cost of living index (COLI) as a purposeful manipulation that allows the U.S. government to report the lowest CPI completely detached from both monetary inflation and actual price inflation. Stop copy pasting walls of text from government you cuck.
No. Not inflation. Inflation is cost of goods index (COGI) CPI is fake government manipulated figure To get real inflation figures multiply CPI by at least 3
> Back in the day it used to be standardized as cost of goods index (COGI) against a fixed basket of goods. That's a terrible way of measuring inflation. A fixed basket of goods will be affected by market forces that have nothing to do with inflation. For example, the war in Ukraine affected cost of petrol/fuel internationally, which made transportation more expensive, which made any product that needs to be transported (like groceries) more expensive. That has nothing whatsoever to do with the dillution of the value of a currency due to government printing out more of it, but it would still show up in the price of your "fixed basket of goods." That way you're measuring a generic cost of living index. You're not measuring any practical, useful inflation information.
What third party? The 10% you're talking about is actually CPI. Every single CPI estimate is reported inflation. Back in the day it used to be standardized as cost of goods index (COGI). This is not used anywhere in CPI estimates. Instead the favorably manipulated cost of living index (COLI) is now used for inflation estimates. Real inflation (COGI) is significantly higher, cannot be manipulated, which is why it's no longer reported.
Old CPI used to be based on comparing the relative price of a fixed basket of goods and services. It used to be known as cost of goods index (COGI). It was changed from that to cost of living index (COLI) which is basically government arbitrarily deciding what are the essentials to maintain a standard of living. Because of this we never get the real inflation figure anymore and government can manipulate COLI to report lowest possible CPI.
Old CPI used to be based on comparing the relative price of a fixed basket of goods and services. It used to be known as cost of goods index (COGI). It was changed from that to cost of living index (COLI) which is basically government arbitrarily deciding what are the essentials to maintain a standard of living. Because of this we never get the real inflation figure anymore and government can manipulate COLI to report lowest possible CPI.