Fact Check: Consumer Price Index relies on data from 75 urban areas.

Fact Check: "Consumer Price Index relies on data from 75 urban areas"

What We Know

The Consumer Price Index (CPI) is a crucial economic indicator that measures the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services. According to the U.S. Bureau of Labor Statistics, the prices used to calculate the CPI are indeed collected from 75 urban areas across the United States. This data is sourced from approximately 23,000 retail and service establishments and includes rent data collected from around 50,000 landlords or tenants.

The CPI is divided into two main categories: the CPI for All Urban Consumers (CPI-U), which covers over 90% of the total U.S. population, and the CPI for Urban Wage Earners and Clerical Workers (CPI-W), which covers about 30% of the population. The CPI-U includes expenditures from various demographic groups, while the CPI-W focuses on hourly wage earners and clerical workers (BLS Overview, Data Catalog).

Analysis

The claim that the Consumer Price Index relies on data from 75 urban areas is substantiated by multiple credible sources, including the U.S. Bureau of Labor Statistics, which is the authoritative body responsible for calculating the CPI. The information is consistent across various documents and reports from the Bureau, confirming that data collection occurs in these 75 urban locations (BLS CPI Summary, CPI Technical Note).

The reliability of the Bureau of Labor Statistics as a source is high, given its status as a federal agency that employs rigorous methodologies for data collection and analysis. The CPI is widely used by economists, policymakers, and businesses as a key measure of inflation and economic health, further underscoring the importance of accurate data collection (CPI Home).

While the claim is straightforward and supported by official data, it is essential to note that the CPI's methodology and the selection of urban areas can evolve over time. However, as of the latest reports, the figure remains consistent at 75 urban areas for data collection purposes.

Conclusion

Verdict: True
The claim that the Consumer Price Index relies on data from 75 urban areas is accurate. This assertion is supported by reliable sources, including the U.S. Bureau of Labor Statistics, which explicitly states that data for the CPI is collected from these urban locations.