The U.S. Bureau of Labor Statistics (BLS) has announced a reduction in its monthly collection of consumer price data, sparking concern among economists and policy experts. The agency stated that it would stop collecting price data in selected areas nationwide, including Buffalo, New York; Lincoln, Nebraska; and Provo, Utah. Although the BLS claimed these cutbacks would have “minimal impact” on national inflation figures, it acknowledged they could increase volatility in more localized or detailed measures.
The price data in question forms the backbone of major economic indicators such as the Consumer Price Index (CPI), which informs Social Security adjustments, union contract negotiations, and monetary policy decisions by the Federal Reserve. These figures are gathered each month by BLS field staff who document the prices of a wide range of goods and services from groceries to clothing to haircuts.
The Bureau of Labor Statistics (BLS) attributed the reduction to resource constraints, stating that it adjusts operations when current funding and staffing can no longer support the effort. However, economists argue this reflects deeper structural issues within the federal statistical system, including aging infrastructure, declining survey response rates, and insufficient funding.
Statistical Reliability at Risk Amid Broader Setbacks
While the challenges to data collection predate President Trump’s return to office, concerns have grown under his administration. Economists point to actions such as disbanding key advisory committees and suggesting alterations to GDP calculations as indicators of a shifting approach to economic measurement. The administration’s early moves also included temporarily taking several datasets offline, although most have since been restored.
Despite fears of politicization, current and former staff at the Bureau of Labor Statistics (BLS) and other agencies have reported no direct interference with statistical methodologies. Experts maintain that U.S. government economic data remains credible. However, they warn that the slow degradation of resources and staffing is beginning to compromise the quality of information.
William Beach, former head of the Bureau of Labor Statistics (BLS) under Trump, stressed the importance of maintaining the “gold standard” in data quality. He warned that once public trust in data diminishes, citizens and businesses may become less willing to participate in surveys, leading to further data deterioration.
Economists Warn of Consequences for Monetary Policy
Economists are particularly worried about the timing of these cutbacks. Inflation continues to be a major concern in 2025, and the Federal Reserve relies heavily on detailed and timely data to set interest rates and guide economic policy. Jed Kolko, former chief economist at the Commerce Department, described the reductions as “collateral damage,” cautioning that any loss of precision is harmful, especially in the current economic climate.
Ryan Sweet, chief U.S. economist at Oxford Economics, echoed these concerns, saying that the Federal Reserve already operates under conditions of data uncertainty and that further reductions make the situation more precarious. “The Fed is used to setting monetary policy in a data fog, but they don’t need it to thicken further,” he said.
As the Bureau of Labor Statistics (BLS) faces growing operational pressures, experts agree that the integrity and granularity of U.S. economic data must be protected to ensure effective policymaking and public confidence in national statistics.
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