Financial Commentator Alleges 40% of Government CPI Data Now "Altered"

A prominent financial commentator, Spencer Hakimian, has recently claimed that a significant portion of official Consumer Price Index (CPI) data released by the government is now "altered data." In a widely circulated social media post, Hakimian stated, "We are now up to 40% of all official CPI data released by the government being 'altered data'. It was ~0% in January." This assertion suggests a dramatic shift in how inflation figures are presented, raising questions about the transparency and accuracy of key economic indicators.

The Consumer Price Index, managed by the Bureau of Labor Statistics (BLS) in the United States, is a critical measure of inflation, reflecting the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services. The BLS routinely updates its CPI methodology to ensure the index remains accurate and reflective of current economic realities. These adjustments often include changes to expenditure weights, item samples, and estimation procedures, which are typically announced in advance.

One such significant update occurred in January 2024, when the BLS revised the expenditure weights for housing components within the CPI. While the BLS maintains these are standard periodic adjustments aimed at improving the index's accuracy by reflecting more recent consumer spending patterns, such methodological changes frequently spark debate among economists and analysts. Some experts have expressed concerns that these adjustments could potentially understate or overstate actual inflation for various segments of the population.

Critics sometimes interpret these methodological adjustments, such as hedonic adjustments for quality improvements or substitution effects, as forms of "alteration" or "manipulation," particularly when they result in lower reported inflation figures compared to previous methodologies. While the BLS emphasizes transparency and continuous improvement in its measurement practices, the strong claim by Spencer Hakimian highlights ongoing discussions and differing interpretations regarding the integrity and representativeness of official inflation data. The specific calculation leading to Hakimian's "40%" figure has not been independently corroborated by official sources.