Economists fear US inflation data less reliable
The Labor Department is collecting less data for its consumer price index due to staffing shortages


What happened
The U.S. Bureau of Labor Statistics said Wednesday it has been collecting less data for its crucial consumer price index, the primary gauge of U.S. inflation, citing insufficient "resources."
In an email this week to economists who had raised concerns about "quirks" in the April CPI report, The Wall Street Journal reported, the BLS said it had indefinitely "reduced" its data collection "due to a staffing shortage in certain CPI cities" amid President Donald Trump's "hiring freeze."
Who said what
The reduction in in-person price checks that usually account for 60% of CPI data is "raising concerns among economists about the quality of the inflation figures just as they are being closely watched for the impact of tariffs," The Associated Press said. The data collection pullback is "collateral damage rather than intentional harm, but still damage," former Commerce Department economic statistics chief Jed Kolko told The New York Times. And "this isn't the moment when we want our read on inflation to get fuzzier."
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
The CPI concerns "follow other government-statistics issues that have worried economists," including the administration's sharp cutback in wholesale price data and disbanding of expert advisory committees that "help improve government stats," the Journal said. "There is no sign of an intentional effort to publish false or misleading statistics," but "any problems with the data could have major implications for the economy."
What next?
The BLS said the cuts to CPI data collection will have "minimal impact on the overall inflation rate,” but could "increase the volatility" of the price data on specific goods and in specific regions.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Peter has worked as a news and culture writer and editor at The Week since the site's launch in 2008. He covers politics, world affairs, religion and cultural currents. His journalism career began as a copy editor at a financial newswire and has included editorial positions at The New York Times Magazine, Facts on File, and Oregon State University.
-
Trump may team with a tech company to create a database of Americans
In the Spotlight A recent report indicated that Trump is partnering with the tech company Palantir
-
Trump says Putin vowed retaliation for Kyiv strike
speed read The Russian president intends to respond to Ukraine's weekend drone strikes on Moscow's warplanes
-
Trump hits Africa, Middle East with new travel ban
Speed Read The travel ban bars visitors from 12 countries and restricts entry from seven
-
Trump is trying to jump-start US manufacturing. Is it worth it?
Today's Big Question The jobs are good. The workers may not be there.
-
Grocery stores under fire for overcharging during cost-of-living crisis
The Explainer A recent investigation has put the spotlight on Kroger, but it is not the only chain being pinpointed
-
The UK-US trade deal: what was agreed?
In Depth Keir Starmer's calm handling of Donald Trump paid off, but deal remains more of a 'damage limitation exercise' than 'an unbridled triumph'
-
Tariffs were supposed to drive inflation. Why hasn't that happened?
Talking Points Businesses' planning ahead helped. But uncertainty still looms.
-
Crypto firm Coinbase hacked, faces SEC scrutiny
Speed Read The Securities and Exchange Commission has also been investigating whether Coinbase misstated its user numbers in past disclosures
-
Starbucks baristas strike over dress code
speed read The new uniform 'puts the burden on baristas' to buy new clothes, said a Starbucks Workers United union delegate
-
Trump vs. China: another tariff U-turn?
Today's Big Question Washington and Beijing make huge tariff cuts, as both sides seek 'exit ramp' from escalating trade war
-
Warren Buffet announces surprise retirement
speed read At the annual meeting of Berkshire Hathaway, the billionaire investor named Vice Chairman Greg Abel his replacement