Alternative data sources for high-tech products in the CPI

This article summarizes recent research conducted by the U.S. Bureau of Labor Statistics to use alternative data sources and methods to improve price-change measurement for high-tech goods and services in the U.S. Consumer Price Index. The U.S. Bureau of Labor Statistics (BLS) has a goal of transitioning a portion of the U.S. Consumer Price Index (CPI) market basket of goods and services from traditional data collection to nontraditional data sources and collection modes.1 Using nontraditional data is not new to the CPI. BLS has used secondary-source data since the 1980s to develop sample frames, to serve in benchmarking analysis, and to supplement collected data to support hedonic modeling and sampling. However, outside of a few notable exceptions like postage, gasoline, used vehicles, and new vehicles, nontraditional data have not directly replaced traditional data collection for most of the CPI market basket.