Truflation Oracle Update [March 2022] — Detailed Report
This week, we began the series of monthly updates to our oracle, with the aim to expand the Truflation database to incorporate more and more data sources and data points.
More data providers per each datapoint will improve accuracy, resiliency, and data decentralization.
The monthly updates will occur around the 15th of each month. They are unrelated to the Truflation’s daily updates that fetch data from the currently incorporated APIs.
The update on the 15th of March 2022 included:
- 2 new data providers for the used car prices
- 1 new data provider for the new car prices
The final impact of the new data incorporation increased the total year-over-year inflation rate by 0.37%, and not 0.06% as we initially estimated ahead of the update.
The update expanded our coverage of the CPI expenditure basket from 55.5% to 59.3% and increased the amount of data sourced covering the The Transportation category from 3 to 6. Transportation category is responsible for 17.1% of the CPI.
Following the update, on the 16th of March 2022, we noticed a big data change of circa 0.57% that was unrelated to the oracle update on the 15th of March.
After thorough quality control, we established that data points from a single data provider responsible for prices of gasoline, energy commodities, and utility bills did not update for a month (4 consecutive weeks), and once the new data flooded in, the index jumped by +0.57%.
It means that the increase should have been spread throughout the month, and gas and energy prices increased by almost 0.6% in just a single month.
Normally, the Truflation algorithm fetches new data from all our providers every day at midnight UTC. We retrospectively check the more significant changes to the index to identify categories that impacted the numbers.
Next month’s changes will most likely include:
- New data weights from a data provider that offers more current consumer expenditure trends.
- New data sources for rent and mortgages, including interest rates and property taxes.
- New data provider for food.
Truflation is a daily, unbiased, data-driven, real-market inflation rate available on-chain to DeFi products and Web3 applications.
Our mission is to provide the most objective, decentralized, and current inflation data and enable a new generation of inflation-proof blockchain products. Ultimately, we hope to help people maintain their purchasing power and take the DeFi space into the new era of an inflation-proof economy.