The Chapwood Index tracks the actual prices of 150 commonly purchased goods and services in the 50 largest metropolitan areas in the United States. Unlike CPI calculations, the Chapwood Index measures real prices paid by consumers without substitutions, hedonic adjustments, weighting manipulations, or other statistical modifications.
"The CPI no longer reflects the financial reality facing American families," said Ed Butowsky, Founder of the Chapwood Index. "Americans know their grocery bills, insurance premiums, taxes, utilities, healthcare costs, and everyday expenses are rising far faster than government statistics suggest."
2025 FINDINGS
The 2025 Chapwood Index data confirms that Americans continue to face annual cost-of-living increases that are several times higher than official inflation reports.
Across major metropolitan areas, long-term Chapwood Index averages remain in the range of approximately 10% to 14% annually, far exceeding the CPI figures used to determine Social Security adjustments, pension increases, wage negotiations, and retirement planning assumptions.
Among the highest long-term inflation cities:
- Oakland: 14.19% average annual increase
- San Francisco: 14.16%
- Long Beach: 14.04%
- San Jose: 13.96%
- Los Angeles: 13.34%
- Boston: 13.03%
Nationally, the average annual increase in the actual cost of living remains approximately 11% to 12%, according to Chapwood Index calculations.
WHY CPI IS NOT A LEGITIMATE COST-OF-LIVING MEASURE
The Consumer Price Index was never designed to measure the actual increase in maintaining a constant standard of living.
The Chapwood Index identifies several reasons why CPI fails as a real-world cost-of-living benchmark:
- CPI relies on statistical adjustments and substitutions that often reduce reported inflation.
- CPI does not accurately capture the full impact of taxes, local costs, and many essential household expenses.
- CPI applies national averages despite vast regional differences in living costs. A family in Dallas experiences a different inflation environment than a family in San Francisco or Boston.
- Wage increases, pension adjustments, and Social Security benefits tied to CPI frequently fail to keep pace with actual household expenses.
The result is a steady erosion of purchasing power.
For example, while official inflation figures often report increases of 2% to 4%, Chapwood data regularly shows real annual increases exceeding 10% in most major cities.
THE IMPACT ON RETIREMENT AND FINANCIAL PLANNING
The consequences of relying on CPI are significant.
Retirement projections, pension assumptions, salary negotiations, and investment return targets are frequently built around inflation rates that substantially understate actual living expenses.
A portfolio earning 7% annually may appear successful when compared to CPI. Yet if a family's true cost of living rises by 11% to 12%, purchasing power continues to decline.
The Chapwood Index demonstrates that many Americans are not falling behind because they fail to save or invest. They are falling behind because the benchmark used to measure inflation fails to reflect their actual expenses.
ABOUT THE CHAPWOOD INDEX
The Chapwood Index was created by financial advisor Ed Butowsky to measure the actual increase in the cost of maintaining a middle-class lifestyle. The index tracks the prices of 150 frequently purchased goods and services across the 50 largest U.S. metropolitan areas and publishes updated results on a regular basis. Unlike CPI, the Chapwood Index reports actual observed prices without seasonal adjustments or statistical modifications.
For additional information and full city-by-city results, visit:
Media Contact:
972.897.0197
Chapwood Investments, LLC
Plano, Texas
]]>Copyright 2026 ACN Newswire . All rights reserved.
