CONSUMER PRICE INDEX (CPI) IS FAKE

The Consumer Price Index (CPI) is a measure of the average change overtime in the prices paid by urban consumers for a market basket of consumer goods and services
Originally, the purpose of constructing a CPI was to produce an indicator that could measure changes in workers’ cost of living and, thus, be incorporated into wage bargaining processes. The first CPIs were released in France and the UK in 1914. In the U.S., the first nationally-based CPI was calculated and released by the US Bureau of Labor Statistics in 1921, with a retrospective series going back to 1913.
Price index theory distinguishes two classes of CPI concepts:
🔺COGI - the cost of goods indices
🔺COLI - the cost of living indices
Originally, the CPI was determined by comparing the price of a fixed basket of goods and services for 2 different periods. In this case, the CPI was a cost of goods index (COGI). Over time, the U.S. Congress embraced the view that the CPI should reflect changes in the cost to maintain a constant standard of living. Consequently, the CPI has evolved into a cost of living index (COLI).
▫️COLI vs COGI
• The cost of living index takes into account a broader range of expenses, reflecting the overall affordability of a location. On the other hand, the price index focuses solely on the changes in prices.
• The cost of living index is useful for individuals or families planning to relocate or compare the affordability of different cities or regions. The price index, on the other hand, is more commonly used by economists and policymakers to monitor inflation and economic trends.
• The cost of living index may vary significantly from one city to another, reflecting differences in factors such as housing costs, transportation, and healthcare expenses. The price index, however, is generally more consistent across different locations as it measures the changes in the prices of standardized goods and services.
🔻LET THAT SINK IN: The switch from a COGI to a COLI as a purposeful manipulation that allows the U.S. government to report a lower CPI !!!