Ludwig and his colleagues at Lisep have come up with an alternate measure they call the True Living Cost. The TLC includes only a household’s minimal needs: housing, medical care, transportation, groceries, child care, technology such as smartphones and internet connections, and miscellaneous expenses like clothing and personal hygiene. Since 2001 the alternative index has risen 1.3 times faster than the CPI.

Inflation Is Worse Than the CPI Shows, Says Ex US Comptroller

The widely watched gauge of consumer prices fails to capture the cost of living crisis for many Americans, argues Gene Ludwig.

By Laura Bliss and Klara Auerbach

September 22, 2025 at 5:00 AM EDT

Ludwig doesn’t blame the Feds for the CPI’s shortcomings, nor does he propose eliminating the indicator. Rather, he says, the US needs complementary metrics to fully grasp the economic realities that working-class households face, so policymakers can respond. US household net worth may be reaching new peaks, and the CPI may be rising more slowly than in recent years. But the TLC suggests things are far from rosy, Ludwig says. “People can’t have their lives constantly going downhill in a society that is actually net getting wealthier.”