US democratic senators press for answers on inflation data gaps amid BLS hiring freeze

The Trump administration’s hiring freeze has exacerbated staffing shortages at the BLS, which faces growing demand for accurate economic data amid the latest surge in inflation

A group of Democratic senators is demanding answers from the US Bureau of Labor Statistics (BLS) after a federal hiring freeze forced the agency to scale back its price data collection, potentially affecting the accuracy of the nation’s key inflation measures, the Wall Street Journal reported.

In a letter seen by The Wall Street Journal, nine Democratic senators, led by Ruben Gallego of Arizona, pressed the BLS on Tuesday to disclose the scope of its staffing shortfalls and the potential impact on official statistics. The lawmakers warned that “inaccurate and incomplete data will have serious downstream consequences,” and requested a response by June 19.

Their letter follows a recent Journal report revealing that staffing shortages had already forced the BLS to lean more heavily on less precise estimation methods in the April inflation data. The agency has stopped collecting price data entirely in certain cities, including Lincoln, Neb.; Provo, Utah; and Buffalo, N.Y.

Concerns grow over the integrity of inflation data

The BLS insists that the curtailed data collection has not distorted headline inflation figures but acknowledges that it could introduce more volatility in regional or category-specific data. However, Democratic senators remain concerned that ongoing staffing gaps could undermine the reliability of core economic indicators.

The consumer-price index (CPI), which is compiled using BLS price data, is the most widely followed measure of inflation in the US It determines everything from Social Security cost-of-living adjustments to federal tax bracket thresholds and the payouts on inflation-linked Treasury securities.

Inflation figures also play a central role in monetary policy. The Federal Reserve’s preferred inflation gauge—the personal-consumption expenditures price index—relies heavily on underlying data from the CPI. In their letter, the senators asked whether the BLS had communicated any concerns to the Fed about data quality.

Political tensions rise over economic statistics

The Trump administration’s hiring freeze has exacerbated staffing shortages at the BLS, which faces growing demand for accurate economic data amid the latest surge in inflation. After cooling from a 2022 peak of 9%, inflation is back in the spotlight as economists assess the impact of Trump’s new tariffs. CPI inflation is expected to have reaccelerated to 2.4% in May, up from 2.3% in April, according to the Journal’s survey of economists.

The controversy has become politically charged. US Labor Department spokeswoman Courtney Parella dismissed the senators’ inquiry, calling it “an obvious attempt by Democrats to undermine data that proves President Trump and his Administration’s economic agenda is working.”

Broader impact on federal economic data

The staffing issues extend beyond inflation data. The BLS also compiles key labour-market statistics, which remain critical amid the administration’s ongoing push to cut federal jobs and spending. The latest BLS report showed the US economy added 139,000 jobs in May, with the unemployment rate holding steady at 4.2%.

As inflation heats up again and market volatility remains high, the accuracy of government economic statistics will be under intense scrutiny. The Democratic senators’ letter suggests that concerns over the integrity of this data are likely to remain a point of contention in the months ahead.