Overview

• Since April, the Bureau of Labor Statistics has reduced the number of businesses and price quotes it surveys for the Consumer Price Index due to staff shortages.
• The agency remains unable to hire and train additional field economists because President Trump’s freeze on federal hiring is still in effect.
• Economists say the smaller sample size increases sampling error and could distort the CPI, undermining confidence in official inflation figures.
• The CPI serves as a benchmark for inflation tracking that directly influences Federal Reserve rate decisions and annual social-security and tax adjustments.
• Federal Reserve Chair Jerome Powell has emphasized that reliable economic data is vital for policy decisions, highlighting the urgency of resolving the staffing shortfall.