Future of Work
A curated resource of recent research on trends shaping Canada's labor market.
Consumer expenditure patterns have been greatly disrupted by the lockdowns and social-distancing policies in many countries. In this article, the author attempts to demonstrate bias measurement in the Consumer Price Indices (CPIs) used to measure inflation. Using estimates obtained from US credit and debit card transactions, the author shows that the basket mostly consumed during the COVID-19 pandemic experienced more inflation than the official CPI. The difference is large and growing over time as consumers spend more on food and similar categories currently experiencing inflation, and less on transportation and related categories with significant deflation.