As a potential home buyer, investor, or real estate professional, understanding inflation is critical to making informed financial decisions.
As The Lending Coach, I’m committed to helping my clients in Arizona and California build generational wealth through smart mortgage strategies.
One tool gaining attention in the economic landscape is Truflation, a blockchain-based, real-time inflation index that claims to offer a more accurate and timely alternative to the traditional Consumer Price Index (CPI) reported by the Bureau of Labor Statistics (BLS).
In this post, I’ll explore what Truflation is, evaluate its reliability compared to BLS data, and discuss how borrowers, investors, and real estate agents can leverage this metric to spot market opportunities.
What is “Truflation”?
Truflation is a decentralized, blockchain-based platform that tracks inflation in real time, using over 18 million data points from more than 60 data providers.
Unlike the BLS CPI, which relies on a fixed basket of goods and services and is updated monthly with a 45-day lag, Truflation pulls daily price data for a wide range of consumer goods and services. This allows it to reflect current market conditions more dynamically.
Truflation’s methodology is transparent, auditable, and market-driven, aiming to address perceived shortcomings in traditional inflation metrics, such as outdated frameworks and subjective adjustments.
For example, posts on X have highlighted Truflation’s advantages, noting its use of 15 million data points compared to the BLS’s 80,000, and its real-time updates versus the BLS’s delayed reporting.
Additionally, Truflation avoids “black box” methodologies and centralized control, making it an appealing alternative for those seeking economic transparency.
Is Trueflation More Reliable Than BLS CPI?
The BLS CPI, while widely used, has faced criticism for its limitations. The CPI framework, last significantly updated in 1999, may not fully capture the realities of today’s economy, where e-commerce, electric vehicles, and other modern factors play significant roles.
For instance, the CPI uses “hedonic adjustments” to account for quality improvements, which introduces subjectivity and can understate inflation’s impact. Additionally, the CPI excludes asset prices like real estate and stocks, potentially missing key drivers of wealth and cost-of-living changes.
Truflation, by contrast, offers several advantages:
- Real-Time Data: Truflation updates daily, providing a near-instantaneous view of price changes, while BLS data lags by weeks. This timeliness can be crucial for anticipating market shifts.
- Granular and Transparent: With millions of data points and an auditable blockchain framework, Truflation reduces reliance on subjective adjustments and centralized control.
- Correlation with CPI: Despite its differences, Truflation’s inflation measurements have shown a high correlation (0.97 to 0.99) with headline CPI since the Federal Reserve began tightening monetary policy, suggesting it’s a credible alternative.
However, Truflation is not without challenges. Its lack of seasonal adjustments and reliance on actual prices without imputation may lead to volatility in its readings.
Additionally, as a newer metric, it lacks the long-term track record and institutional acceptance of the BLS CPI, which remains the Federal Reserve’s primary reference for monetary policy. While some X users argue Truflation is “way more accurate than the market,” its reliability depends on the context and use case.
As The Lending Coach, I specifically value transparency and accuracy, and Truflation’s approach aligns with my commitment to honesty and understanding of my clients’ needs.
While the BLS CPI remains the standard, Truflation’s real-time insights offer a compelling complement for those navigating fast-moving markets.
Market Opportunities for Borrowers and Real Estate Agents
For borrowers, investors, and real estate agents, Truflation’s real-time data can provide a competitive edge in identifying market opportunities, particularly in the housing market. Here’s how:
For Borrowers
- Anticipating Interest Rate Trends: Truflation’s ability to signal inflation trends earlier than the BLS CPI can help borrowers anticipate Federal Reserve actions. For example, a post on X noted that Truflation identified a disinflationary trend in December 2024, ahead of the BLS’s confirmation. If Truflation indicates rising inflation, borrowers may want to lock in fixed-rate mortgages sooner to avoid higher interest rates. At Efficient Lending, we guide clients to secure favorable terms early, ensuring affordability in an inflationary environment.
- Leveraging Fixed-Rate Mortgages: Inflation benefits borrowers with fixed-rate mortgages, as future payments are made with “cheaper” dollars. Truflation’s real-time insights can help borrowers time their applications to capitalize on this dynamic before rates rise.
- Wealth-Building Opportunities: Real estate is a proven hedge against inflation, as home values often rise faster than the CPI. Truflation’s data can help borrowers identify periods of accelerating inflation, signaling a strong time to invest in property to build long-term wealth.
For Real Estate Agents and Investors
- Market Timing: Truflation’s daily updates allow agents to spot inflationary trends that could affect housing demand and pricing. For instance, if Truflation signals rising inflation, agents can advise clients to act quickly before higher mortgage rates reduce affordability.
- Rental Market Insights: During inflationary periods, rental prices tend to rise due to increased demand and limited supply. Truflation’s granular data can help agents identify markets where rental demand is surging, enabling them to guide investor clients toward high-return opportunities.
- Client Education: Agents can use Truflation’s transparent data to educate clients about market conditions, building trust through clear, data-driven advice. This aligns with Efficient Lending’s value of explaining the nuances of mortgage and real estate decisions to empower clients.
Recent Results and Context
As of July 2025, Truflation reported a U.S. inflation rate of 1.82%, compared to the BLS CPI’s 2.7% for the 12 months ending June.
This discrepancy suggests Truflation may detect deflationary or disinflationary trends faster than the BLS, potentially giving borrowers and agents an early warning to adjust strategies.
For example, a lower Truflation rate could signal a window to secure lower mortgage rates before the market catches up.
How The Lending Coach Can Help
I believe in building lasting relationships based on trust, transparency, and education.
Whether you’re a borrower looking to secure a mortgage that fits your unique needs or a real estate agent seeking to guide clients through a dynamic market, I’m here to help.
By staying informed about tools like Truflation, I can provide timely advice to help you capitalize on market opportunities and build generational wealth through real estate.
To learn more about how inflation trends affect your mortgage or real estate strategy, please do reach out to me here…
Ready to take the next step? You can set up an appointment with me here…
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The blog postings on this site represent the positions, strategies or opinions of the author and do not necessarily represent the positions, strategies or opinions of Guild Mortgage Company or its affiliates. Each loan is subject to underwriter final approval. All information, loan programs, interest rates, terms and conditions are subject to change without notice. Always consult an accountant or tax advisor for full eligibility requirements on tax deductions.
