Compared to 2.4% of CPI (in logs). Many people think that government statistics understate the true rate of inflation. It used to be John Williamson at ShadowStats. Now it’s EJ Antoni at the Heritage Foundation (who suggests the use of Primerica’s daily price index). But the American Institute for Economic Research’s “Everyday Price Index” (EPI) says otherwise (a year and a half ago).
Figure 1: CPI (blue), chained CPI (red), HICP (purple), EPI (green), inflation (blue), all seasonally unadjusted, and the PCE deflator – in the market, seasonally adjusted (pink), all in log 2023M03= 0. The Truflation index is measured on the last day of the month. Source: BLS, European Commission via FRED, Truflation, AIER.
AIER’s EPI attempts to tabulate, as it says, daily costs, deducting the prices of those goods and services that are deferred. Truflation taps into big data to produce high-frequency estimates of the cost of living (text here).
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