From the AnthologyAI Blog

Revolutionizing Economic Insights: AnthologyAI's DirectCPI and the Future of Inflation Tracking

July 8, 2024

AnthologyAI transforms economic insights with an alternative CPI methodology, offering businesses an accurate digital view of consumer activities. We illustrate this with a case study on milk, a staple commodity that affects a broad consumer base, and compare our approach to traditional benchmarks.

Economic decisions hinge on timely data. However, traditional measures like the Bureau of Labor Statistics’ Consumer Price Index (CPI) often lag behind the fast-paced market changes that are influenced by everyday consumer behaviors. Traditional CPI, as calculated by the Bureau of Labor Statistics (BLS), provides a monthly measure reflecting price changes observed in the preceding month, using a fixed basket of goods and services. This method, while robust, doesn't account for the swift shifts in consumer behavior or economic conditions, limiting its utility for real-time decision-making.

Enter AnthologyAI's DirectCPI—designed to provide inflation indicators that are not only customizable but also closer to real-time. AnthologyAI leverages transactional data, combined with dynamic demographic attributes, to create a nuanced view of inflation as it happens. The flexibility of DirectCPI allows for a tailored application, focusing on specific states, sectors, or even individual consumer cases, making it a versatile tool for economic analysis.

AnthologyAI has developed a whitepaper that illustrates this capability through a case study on milk—a staple commodity that affects a broad consumer base. The study compares the traditional BLS milk CPI with AnthologyAI’s DirectCPI, derived from real-time pricing data of dairy products. 

Case Study: The Milk Index

One of the key applications of DirectCPI is illustrated in our case study on milk. Milk, a staple in consumer markets, serves as an excellent indicator of economic trends and inflation. By analyzing transaction data from a diverse demographic, AnthologyAI has developed a milk CPI that not only aligns closely with traditional BLS metrics but also offers predictions on future trends with accuracy.


Our methodology involves detailed data collection and sophisticated weighting techniques that consider demographic and geographic variances. This allows for the creation of customized CPI measures that are both granular and immediately relevant. For instance, by adjusting the weighting based on state and demographic factors, we've been able to tailor the CPI to reflect more specific economic impacts.

Forecasting Capabilities

The forecasting power of DirectCPI is demonstrated through advanced models like ARIMA and neural networks which incorporate AnthologyAI’s real-time data. This approach is valuable because it can handle the variability and non-linearity often found in economic data, making the forecasts more reliable and reflective of real-world dynamics.

This whitepaper is an essential read for anyone involved in economic forecasting, policy-making, or financial markets, offering a fresh perspective on CPI and its implications for understanding economic trends and consumer behavior. By integrating AnthologyAI's insights, businesses can gain access to real-time economic indicators that are more aligned with current market conditions.

Download the Whitepaper: Rethinking the CPI with Near Real-Time Data

Partner with AnthologyAI

We work with the most progressive, technology-enabled, ethically-minded corporations who want to rethink how we collect and make decisions from consumer behavioral data. Our platform fulfills hundreds of different use cases. Want to see how we can bring new consumer intelligence to your business? Get in touch with our strategic development team.