Trump-era employment freeze hurts US inflation numbers.
The collection of US inflation data has been adversely affected by the hiring freeze implemented during the Trump administration. The Labor Department’s economic statistics division has been compelled to limit the scope of its data collection for a key measure of US inflation due to staffing shortages stemming from hiring freezes implemented during the Trump administration, as reported by the Wall Street Journal on Wednesday. The paper reported that the Bureau of Labor Statistics, starting in April, decreased the number of businesses it surveys for the benchmark Consumer Price Index report, attributing this change to the hiring freeze implemented by President Donald Trump on his first day back in office, January 20.
The CPI experienced a temporary reduction in the number of outlets and quotes it sought to collect, attributed to a staffing shortage in specific CPI cities, starting in April, according to a BLS email to private economists that was shared with the Journal. The implementation of these procedures will persist until the hiring freeze is rescinded, allowing for the recruitment and training of additional personnel. The Labor Department and BLS have yet to provide a response to inquiries from Reuters.
CPI is one of the most scrutinized economic datasets released by the US government, serving as a crucial resource for economists, investors, and policymakers seeking near-real-time assessments of inflation trends. It offers a monthly overview of fluctuations in prices across the board, as well as among a diverse array of individual products and services, including eggs, eyeglasses, airline tickets, and automobiles.
