Published 08 Jun, 2022
This month the Truflation index is getting its biggest overhaul yet. The index updates with the entirely independent consumer trends based on multiple methodologies and global data sources to exchange the current data weights.
Truflation is also launching an entirely new website and a dashboard that offers more insights and highly detailed daily inflation charts.
Truflation is an independent US inflation index that has so far used the US CPI methodology and its relative importance weights combined with real-market price data to measure inflation more accurately.
Now, the company is going global, incorporating wide consumer expenditure information to improve the US index accuracy and launch inflation metrics across the world economies.
“This update is a huge leap for Truflation. It will speed up our expansion to Europe and South America. Our goal is to provide the best economic insights to the world. With the independent demographics, we get a direct view into what households actually spend, and we can count their inflation better.” - said Stefan Rust, Founder of Truflation.
The professional data team behind Truflation, which combines 50+ years of data science and developing data products, just acquired and implemented highly granular and global household expenditure data. It means the index now knows what households actually buy during the year and can update their data weights accordingly to reflect more accurate and current inflation numbers.
Previously used basket (source: BLS):
Currently used weighting basket:
The indices are also easier to scale across different countries using the same methodology and categories for improved comparability, unlike now, where each country has its preferred method of calculating inflation.
The new data will take Truflation away from the current CPI model that uses 6 main CPI categories and into the model that expands and divides the categories into 12 main pillars.
Breaking up the major categories will give Truflation users access to more data insights and might come in handy to DeFi builders once the separate categories are released as independent price indices on the blockchain. Many DeFi, CeFi, and other industries have already expressed interest in certain categories, especially Housing, Health, and Transport data.
The new consumer data are available for various income households and take the average budget distribution of all income groups. The data is obtained through a combination of global data sources and different methodologies, including census, mini-census, and high-quality surveys of consumers and merchants.
The newest update goes live on the 8th of June with a predicted impact of -1.2% on the YoY % change.
Written by Natalia Nowakowska