The CPI Is Plagued With Bias and Statistical Manipulation

The Inflation Guy is often asked about the Chapwood Index, which is a non-governmental inflation index that is billed as a “true cost of living index, unlike CPI.” In what ways does this index achieve that goal, and where does it fall short? This episode also serves as another illustration of how the Inflation Guy can go off the rails even when given a simple assignment. Which is better, Chapwood or CPI? See what the Inflation Guy has to say about the matter.

Notes:

Price Stats (neé Billion Prices Project) https://www.pricestats.com/inflation-series?chart=1837 - an independent (but no longer free) inflation index that the Inflation Guy likes better than the Chapwood Index.

Blog article: “Eighth-Grade Math vs Shadowstats” https://inflationguy.blog/2021/05/25/eighth-grade-math-vs-shadowstats/

Podcast callbacks: “Ep. 7: Rents and Sensibility” https://inflationguy.podbean.com/e/ep-7-rents-and-sensibility/

“Ep. 4: The Making of an Inflation Indedx” https://inflationguy.podbean.com/e/inflation-guy-podcast-episode-4-the-making-of-an-inflation-index