Inflation Data Dilemma: Impact of Hiring Freeze Raises Concerns
The Labor Department's Bureau of Labor Statistics has cut inflation data collection due to a federal hiring freeze, raising concerns about data quality. This move coincides with the economic impact of tariffs and could affect crucial inflation measures. Economists worry that extended data cutbacks could compromise economic insights.
- Country:
- United States
The Bureau of Labor Statistics has curtailed inflation data collection due to a federal hiring freeze initiated by the Trump administration, stirring concerns among economists about the accuracy of inflation metrics. This occurs amid scrutiny of inflation's impact due to tariffs.
The cutbacks have ceased data collection in areas like Lincoln, Nebraska, and Provo, Utah, and have altered the methodology for constructing the Consumer Price Index. Economists fear these reductions may increase volatility in inflation reports, compromising crucial economic insights.
With tens of millions of Social Security adjustments and $2 trillion in Treasury bonds tied to these figures, the cutbacks are significant. While BLS suggests minimal impact, experts like Omair Sharif warn of potential inaccuracies and volatility due to reduced sample sizes.
(With inputs from agencies.)
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