The Bureau of Labor Statistics has announced a reduction in its collection of consumer price data due to budget limitations. This decision raises concerns about the reliability of federal economic statistics. Every month, government employees gather price information on various goods and services to calculate inflation measures that influence decisions such as cost-of-living adjustments in union contracts and Social Security benefits. The Bureau stated that it has ceased data collection in certain areas, including Buffalo, Lincoln, Nebraska, and Provo, Utah. While the agency claims the cuts will minimally affect overall inflation estimates, they may increase volatility in specific categories or regional indexes. Economists warn that this is another challenge for a statistical system already strained by limited resources and declining survey participation.
— new from The New York Times
