Why smart investors no longer trust the U.S. Consumer Price Index

The reliability of U.S. inflation data is facing doubts as more than one-third of CPI data relies on estimated prices in August 2025, up from 32% in July, the highest level since the start of tracking. Economists warn that this threatens the credibility of the Fed's policy benchmark, with estimates surges due to challenges in data collection and shifts in consumption patterns during the pandemic. The market expressed concern that the potential noise in inflation indicators could affect monetary policy decisions.