Inflation data threatened by government hiring freeze as tariffs loom
- In April 2025, inflation in the United States rose by 0.2% on a monthly basis and 2.3% compared to the previous year, marking the slowest annual increase since 2021.
- These figures stemmed from a hiring freeze imposed by President Trump on January 20, which caused staffing shortages at the Bureau of Labor Statistics.
- Due to reduced staff, the BLS cut back on price checks and data collection in key cities and relied on as much as 29% educated guesses to construct the Consumer Price Index.
- Erica Groshen, former BLS commissioner, noted that disbanding advisory panels could indicate attempts to manipulate data, while economists warn that lower data quality affects economic policies and everyday lives.
- These conditions raise concerns about the reliability of inflation data, implying possible impacts on government policies, tax brackets, and investor decisions until staffing and data collection normalize.
64 Articles
64 Articles
Report: No Good Inflation Data After Labor Department Cuts
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