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Yup. Welcome to the wild wild west of hedonic adjustment. Things like side impact airbags and rear view cameras basically give the BLS unlimited power to drive
by nimos 5y ago
Yup. Welcome to the wild wild west of hedonic adjustment. Things like side impact airbags and rear view cameras basically give the BLS unlimited power to drive down inflation.
- standeven 5y agoI don't believe new or used vehicle purchases qualify for hedonic adjustments. https://www.bls.gov/cpi/quality-adjustment/home.htm https://www.bls.gov/cpi/quality-adjustment/home.htm
- nimos 5y agoCars fall under cost based adjustments. This is the most recent (AFAIK) document the BLS has published: https://www.bls.gov/cpi/quality-adjustment/new-vehicles.pdf https://www.bls.gov/cpi/quality-adjustment/new-vehicles.pdf It's not entirely an unfair point in the sense clearly a modern car with modern safety and electronics costs more to produce (hence the cost basis). But as far as I know the BLS is basically given free reign to invent the cost basis.