The U.S. Labor Department has scaled back its collection of inflation data due to a government hiring freeze imposed by the Trump administration. This move has raised concerns among economists about the reliability of inflation figures, especially as tariffs are expected to influence economic conditions. The Bureau of Labor Statistics (BLS), responsible for the monthly consumer price index, has reduced its sampling efforts nationwide and ceased data collection in certain cities. An email from the BLS revealed that staffing shortages prompted a temporary reduction in data collection, which will continue until the hiring freeze is lifted. These cutbacks coincide with heightened economic uncertainty and may affect the accuracy of inflation reports. The BLS stated that the changes minimally impact overall inflation data but could increase volatility in specific item prices. Economists warn that reduced sample sizes introduce more error into estimates and may degrade the reliability of statistical agencies over time. The hiring freeze was extended multiple times, potentially affecting future inflation reports. Former BLS commissioner Erica Groshen noted a significant decline in agency personnel, which could threaten other economic measures. — new from AP News
