ilmscore | Government Inflation Reporting Methodology Predictions
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Government Inflation Reporting Methodology

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Recent Predictions

Total: 7
Correct: 5
Incorrect: 0
Pending: 2
Unrated: 0
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The CPI inflation report measures the change in the cost of maintaining the same standard of living, which is subjective and allows for manipulation.
"The CPI inflation report measures the change in the cost of maintaining the same standard of living ..."
ClearValue Tax ClearValue Tax
Sep 30, 2025
Correct
CPI Inflation Report...
The substitution effect used in CPI calculations will always understate the true rate of inflation.
"And then there's the substitution effect. ... the substitution effect is always going to understate ..."
ClearValue Tax ClearValue Tax
Sep 30, 2025
Correct
CPI Inflation Report...
The CPI methodology can claim that the price of smartphones has not increased over 5 years, despite a price hike from $400 to $800, by attributing the difference to quality improvements.
"So, for example, if your smartphone, let's just say that it costs $800 this year, okay? But 5 years ..."
ClearValue Tax ClearValue Tax
Sep 30, 2025
Correct
CPI Inflation Report...
Concerns have arisen about the reliability of federally produced data, including the CPI, due to its methodology and falling survey response rates, leading to lower data quality.
"Questions have recently arisen surrounding the reliability and usefulness of certain federally produ..."
ClearValue Tax ClearValue Tax
Sep 30, 2025
Correct
CPI Inflation Report...
The CPI relies on theoretical questions like 'owner's equivalent rent' for housing costs, which do not reflect real market rates and are not based on hard data.
"And here's another major issue that a lot of people have a problem with. It's the theoretical questi..."
ClearValue Tax ClearValue Tax
Sep 30, 2025
Pending
CPI Inflation Report...
The CPI inflation data collection methodology is flawed because it does not reveal specific price quotes from retailers, making the numbers unauditable.
"So the first issue is sampling. The government collects price data from retailers and establishments..."
ClearValue Tax ClearValue Tax
Sep 30, 2025
Correct
CPI Inflation Report...
The substitution effect is used to 'pad' inflation numbers, and the hedonic adjustment removes price increases attributed to quality improvements, impacting the reported inflation rate.
"So they use the substitution effect to pad their numbers. And then you have the hydonic adjustment. ..."
ClearValue Tax ClearValue Tax
Sep 30, 2025
Pending
CPI Inflation Report...