Hedonic models outside shelter and apparel slightly impact CPI, Jeremy Horpedahl notes

Hedonic models outside shelter and apparel slightly impact CPI, Jeremy Horpedahl notes
Hedonic models add minimal CPI change

Jeremy Horpedahl observes that hedonic models currently used in the Consumer Price Index outside of shelter and apparel categories have increased the annual rate of change for the All Items CPI, but only by approximately 0.005 percent per year.

This modest effect highlights the limited impact of these models on the broader inflation measure.

Horpedahl has previously examined other economic measures, challenging a chart’s CPI-U data showing a 26% increase from 2019 to 2025. In another recent note, he reported that a proposed data center in Little Rock could increase property taxes by 5,000 times current levels. His recent observations continue a focus on granular impacts within official statistics.

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