Early Results from the RESET Demonstration Project: Inflation in Food at Home

This paper presents early results from the RESET Demonstration Project, an initiative that constructs price and sales indices using item-level transactions data. The project’s overarching goal is to demonstrate the feasibility and advantages of leveraging modern transactions data for economic measurement by pointing toward a future in which official economic statistics are rebuilt on 21st-century data and technology. The paper introduces new inflation measures for Food at Home and evaluates them on two fronts: how they compare to current official statistics and what they offer as novel measures that capture more accurately the dynamics of consumer choice. The paper also addresses the challenges of producing reliable and credible official statistics from item-level transactions data and reports findings on recent Food at Home inflation trends.