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Concerns are mounting over the reliability of recent U.S. inflation data after the Bureau of Labor Statistics revealed staffing shortages have disrupted its monthly price survey, The Wall Street Journal writes.
Due to a federal hiring freeze and cuts under the Department of Government Efficiency, the BLS reduced the number of businesses it surveyed in April and relied more heavily on estimates based on loosely related products or different regions—a method economists say increases the likelihood of error.
Nearly 30% of price data in April’s report used this less precise technique—double the norm— prompting scrutiny from economists and market analysts. The inflation rate informs everything from Social Security adjustments to federal tax brackets and bond yields, making accurate reporting critical.
While there’s no suggestion of intentional data manipulation, the staffing shortfall has raised red flags about the integrity of one of the government’s most consequential economic indicators.
