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50% Increase in Imputed Items: How Budget Cuts Are Shaking Up CPI Data Collection

The Bureau of Labor Statistics has announced a reduction in data collection for the Consumer Price Index. This reduction affects various areas across the United States. In April, BLS completely suspended CPI data collection in Lincoln, Nebraska, and Provo, Utah. By June, Buffalo, New York, also saw its data collection suspended. These changes impact both the commodity and services survey and the housing survey. While the overall all-items CPI-U index remains minimally affected, subnational or item-specific indexes may experience increased volatility. Due to these actions, the number of imputed items increased by 50% and response rates rose in April. BLS implements these reductions when resources cannot support the ongoing collection effort. The agency will continue to assess its survey operations as budget constraints force a reduction in data coverage, shifting the estimates.

Source: flowingdata.com

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