June 2022 Update — Detailed Report
Last week, the 8th of June 2022, our dev and data teams began implementing the most massive Truflation overhaul to date.
We launched a new website and the price indices dashboard with a high data granularity.
We also changed the way we calculate the index by replacing the BLS data weights with independent consumer expenditures data.
Finally, we added new data related to home ownership that the BLS CPI index does not include.
The index update was covered by mainstream media and our own blog, which is also taking over as the main source of our product updates and CPI insights.
The total impact of the changes on the Truflation index was -1.2%.
Truflation now has independent data for 55.4% of the CPI basket.
New data weights
We obtained broad demographic data for the US household expenditures. The data was available for all income groups and purchase information in 12 major categories that differ slightly from those used in the BLS CPI basket.
The incorporation of the new data and its 12 categories enables Truflation to provide more insights to our users. It will also help Truflation scale to other countries, as the demographics data provider offers the data on a global scale.
The data is based on the high-quality survey, census data, and mini census data, from 2021, as opposed to CPI data weights from 2019/2020.
Current relative importance per 12 categories in our index basket:
Upon changing the data weights, Truflation has BLS-independent data for 55.4% of the CPI basket.
Housing data
Our categories changed from 6 to 12, and with them, the subcategories that go into each bucket.
The former housing data included utilities, furnishings and rent, but not the home ownership.
The current housing data excludes utilities and furnishings but includes rent for the rented homes and mortgages and interest rates for the owner homes.
Previous housing, furnishing and utilities category took over 45.18% of the whole basket. The current housing category takes only 23.2% of the basket. However, utilities take 5.9% and furnishings are now part of the household durables and daily items that take 7.16% of the basket.
Our old white paper is now outdated. We are working to provide you with the current detailed information. In the meantime, you can read our methodology page and blog updates.
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Media coverage for June 2022
