I have a question regarding the algorithms used to calculate food inflation. Do they use packaging-unit based costs like a "can" of tuna, or do they use weights and volumes like an "ounce" of canned tuna?? As any shopper knows a "can" of tuna is nominally the same price as it was 5 years ago BUT the can only holds 5 ounces instead of 7 ounces which is almost a 30% DECREASE in the amount of tuna in a can....or conversly a 40% INCREASE in price!! The same thing is true for virtually every packaged product on the shelf! Does anyone know of a site where this answer can be determined?
The Bureau of Labor Statistics creates a basket of goods and services that represent the consumption of the average population.For food items it includes caned and raw products,as they are part of the habits of the average consumer.Here there is a link from BLS that it explains the conformation of the basket,check pages 9 and 15.Anyway TIPS are not related to CPI-U but to CPI-U core,that excludes food and energy.