Economists fear US inflation data less reliable

Inflation figures are of particular import now, as they are 'being closely watched for the impact of tariffs'

(Image credit: Yuki Iwamura / Bloomberg via Getty Images)

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."

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."

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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.

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.