Quality/new goods bias

Quality/new goods bias is inflation calculated using a fixed basket of goods over time tends to overstate the true rise in cost of living because it doesn't take into account improvements in the quality of existing goods or the invention of new goods.

Definition

According to Principles of Economics by Timothy Taylor (3rd edition),

Quality/new goods bias. Inflation calculated using a fixed basket of goods over time tends to overstate the true rise in cost of living because it doesn't take into account improvements in the quality of existing goods or the invention of new goods.