Inflation is one of nowadays’ most discussed economic topics.
Long denied by the Central Banks that created it, but impossible to ignore now that the official Consumer Price Index in the US is increasing at a 7.9% rate (March) ?
Some Americans would even say that it feels much more than 7.9%… and they may be right.
The method used to calculate the US inflation is quite obscure: the government uses survey data instead of real prices, and the details of how these surveys are done are not publicly available. The goods basket, as well as different product categories’ weight within it also change constantly, and noone really has access to complete data.
Inflation is a very important economic metrics, and it’s disturbing that people need to trust one administration to calculate it.
Good news: the blockchain can help eliminate trust.
Truflation has built an on-chain feed tracking real prices of consumer goods using the Chainlink Oracle – a decentralized network of nodes collecting data from multiple sources and feeding it to the blockchain DApps.
Truflation Oracle deconstructs the CPI’s basket of goods’ categories and subcategories to better reflect actual spendings, while using public data sources or the data coming from its partners at the Penn State University.
With calculations and data sources made transparent, Truflation can provide an alternative CPI index… and guess what, in the US it currently registers a YTD inflation of 13.5% instead of the official 7.9%.
How much different our economic landscapes could be with proper decentralized tools at hand?