What is the difference between TSDI and CPI?
There are several differences between the two indexes. Two major differences are: • CPI measures inflation in prices of goods and services purchased only by consumers, excluding government and business purchases. TSDI includes government and business purchases. • TSDI covers only those goods and services subject to California Sales and Use Tax, but CPI covers all goods and services, including non-taxable transactions such as housing, medical care, education, and communication services. In recent years, prices of many non-taxable items such as housing have dramatically increased compared to prices of many taxable items in California.[1] Figure 1 shows the growth in CPI and TSDI since 1985. Figure 1. California Consumer Price Index (CPI) vs.
