Truflation updates its inflation index to better reflect real consumer spending

Truflation, the world’s leading independent inflation index, is now able to offer a more accurate reflection of consumer spending, thanks to a revolutionary new feature announced today.

With data on core consumer price index (CPI) for the US out this Friday, Truflation says its Dashboard 2.0 has added independent data weights, decoupling from the government’s CPI to give a more accurate measure of inflation.

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Stefan Rust, founder of Truflation said via statement share with Invezz:

This update is a huge leap for Truflation. Our goal is to provide the best economic insights to the world. With independent demographic data, we can obtain a direct and accurate view into what households actually spend money on, and we can measure inflation more accurately. We can also expedite our expansion to Europe and South America,” said Stefan Rust, Founder of Truflation. 

Truflation’s Dashboard 2.0 has 12 categories

The platform’s groundbreaking feature adds consumer expenditure data, with revised weightages increasing the key CPI data categories from 6 to 12. Here’s a comparison of the Truflation’s data weightages and that of the government’s CPI.

According to Truflation, the new data points are designed to give a better idea of inflation via precise market prices and consumer expenditures as reflected in various cost areas. Dashboard 2.0 will use the blockchain to have each of the 12 categories represented as unique, independent price indices.

With its new technology, the index can map what consumers across different households spend their money on throughout the year. This is possible through highly granular, global spending data input into the Truflation index.

To get the data, Truflation relies on various methodologies, including census and high-quality surveys involving consumers and merchants.

Mapping global consumer expenditure

The system provides real-time updates to data weights, with highly accurate current inflation figures mapped across all of the 12 price categories. Other than this, Truflation is also scalable – making it possible to adopt the same methodology worldwide for better comparability.

A standardized inflation calculation mechanism, according to the platform, will allow the global community to have a shared approach towards surmounting common challenges such as consumer prices, cost and consumer welfare.

US inflation remains near a 40-year high after April data showed a moderation of 0.2% to 8.3%, slightly lower than the 8.5% annual pace recorded in March.